Convention on International Interests in Mobile Equipment Act, 2007 (Act No. 4 of 2007SchedulesSchedule 1 : ConventionChapter VIII : Effects of an International Interest as against Third PartiesArticle 29 - Priority of competing interests |
| (1) | A registered interest has priority over any other interest subsequently registered and over an unregistered interest. |
| (2) | The priority of the first-mentioned interest under the preceding paragraph applies— |
| (a) | even if the first-mentioned interest was acquired or registered with actual knowledge of the other interest; and |
| (b) | even as regards value given by the holder of the first-mentioned interest with such knowledge. |
| (3) | The buyer of an object acquires its interest in it— |
| (a) | subject to an interest registered at the time of its acquisition of that interest; and |
| (b) | free from an unregistered interest even if it has actual knowledge of such an interest. |
| (4) | The conditional buyer or lessee acquires its interest in or right over that object— |
| (a) | subject to an interest registered prior to the registration of the international interest held by its conditional seller or lessor; and |
| (b) | free from an interest not so registered at that time even if it has actual knowledge of that interest. |
| (5) | The priority of competing interests or rights under this Article may be varied by agreement between the holders of those interests, but an assignee of a subordinated interest is not bound by an agreement to subordinate that interest unless at the time of the assignment a subordination had been registered relating to that agreement. |
| (6) | Any priority given by this Article to an interest in an object extends to proceeds. |
| (7) | This Convention— |
| (a) | does not affect the rights of a person in an item, other than an object, held prior to its installation on an object if under the applicable law those rights continue to exist after the installation; and |
| (b) | does not prevent the creation of rights in an item, other than an object, which has previously been installed on an object where under the applicable law those rights are created. |