On occasion, property to which a perfected security interest is attached under Australia's Personal Property Securities Act 2009 (Cth) (PPSA) is transferred in return for proceeds, and those proceeds are also transferred, all of which takes place without the consent of the security interest holder.
In theory, the process could continue indefinitely where further transfers of the collateral take place in exchange for different proceeds, and so on. There is currently uncertainty about whether the PPSA permits the security interest to extend to proceeds beyond those that arise from the first transfer in the series.
