Section 588FL (20 business days)
The Corporations Act rule that a security interest from a company must be registered within 20 business days of the agreement, or at least six months before insolvency, or it vests in the company.
Section 588FL catches late registrations even when they are otherwise valid. For a supplier on continuing terms the 20 business days run from when the customer accepted the terms, not from each invoice. A court can extend the time, but only on application and not after the event.
Related terms
- Vesting (s267) — The rule that an unperfected security interest passes to the grantor when the grantor becomes insolvent.
- Registration timing — The windows that decide whether a registration gets PMSI priority and survives s588FL.
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