ADVOKS GLOBAL · KENYA
Movable Property Security Rights Act
45. Rights of buyers or other transferees, leases or licences of collateral
Edition: 2022-12-31 · In force
45. Rights of buyers or other transferees, leases or licences of collateral
(1)If the collateral is sold or otherwise transferred, leased or licensed and a security right in that collateral is effective against third parties at the time of the sale or transfer, lease or license, the buyer, transferee, lessee or licensee acquires its rights subject to the security right except as provided in this section.(2)A buyer or other transferee of the collateral acquires its rights free of the security right if the secured creditor authorizes the sale or other transfer of the asset free of the security right.(3)The rights of a lessee or licensee are not affected by the security right if the secured creditor authorizes the grantor to lease or license the asset not affected by the security right.(4)A buyer of tangible collateral sold in the ordinary course of the seller's business acquires its rights free of the security right, provided that, at the time of the conclusion of the sale agreement, the buyer does not have knowledge that the sale violates the rights of the secured creditor under the security agreement.(5)The rights of a lessee of tangible collateral leased in the ordinary course of the lessor's business are not affected by the security right, provided that, at the time of the conclusion of the lease agreement, the lessee does not have knowledge that the lease violates the rights of the secured creditor under the security agreement.(6)The rights of a non-exclusive licensee of intangible collateral licensed in the ordinary course of the licensor' s business are not affected by the security right, provided that, at the time of the conclusion of the license agreement, the licensee does not have knowledge that the license violates the rights of the secured creditor under the security agreement.(7)If a buyer or other transferee of tangible collateral acquires its rights free of a security right, any subsequent buyer or other transferee also acquires its rights free of that security right.(8)If the rights of a lessee of a tangible collateral or licensee of intangible collateral are not affected by the security right, the rights of any sub-lessee or sub-licensee are also unaffected by that security sight.