Article 21 - Goods returned or repossessed
(1) Where a
Debtor sells or leases Goods which are subject to a Security Interest in circumstances in which the purchaser or lessee takes free of the Security Interest in accordance with Article 19(1)(A) or Article 23, the Security Interest reattaches to the Goods if:
Goods are returned to, seized or repossessed by the Debtor; and
(B) the obligation secured by that
Security Interest remains unpaid or unperformed.
(2) Where a
Security Interest reattaches under paragraph (1), the time of perfection of the Security Interest is determined as if the Goods had not been sold or leased, if:
Security Interest was perfected by the filing of a Financing Statement, at the time of the sale or lease; and
(B) the filing is effective at the time of the return, seizure or repossession.
(3) Where a sale or lease of
Goods creates an Account or Chattel Paper and:
Account or Chattel Paper is transferred to another party; and
Goods are returned to, seized or repossessed by the Debtor,
the transferee of the
Account or Chattel Paper has a Security Interest in the Goods which attaches when the Goods are returned, seized or repossessed.