When are goods serial numbered for the purpose of section 46?

Section 46 of the PPSA deals with taking free of any security interest where the personal property is acquired from a seller in the ordinary course of the seller’s business.

This section does not apply to ‘serial numbered goods where the buyer holds the goods as inventory.

‘Serial number’ is defined in section 10 as:

A serial number by which the regulations require or permit the collateral to be described by registration.

The PPS regulations 2010 provide that for consumer property serial numbered goods include aircraft, intangible property ie a design, patent etc, motor vehicles and watercraft. Refer to regulation 2.2.