The recent Court of Appeal decision in Healy Holmberg Trading Partnership v Grant, clarified the issue of prioritising multiple security interest claims. The Court held the first registered interest takes priority over a latter perfected claim. The Court analysed section 66 of the Personal Property Securities Act 1999, which provides that priority is determined by which report was registered first, not by which claim is perfected first. The Court held section 66 was the guiding provision in establishing which party registered their interest first.
These findings mean any party claiming the existence of a security interest agreement must provide evidence of any such agreement. The Court of Appeal's findings also mean that any party who registers their financial reports in respect of a security interest is entitled to priority over a latter perfected claim.
See Court decision here.