ADVOKS GLOBAL · KENYA
Movable Property Security Rights Act
46. Rights of non-consensual creditors
Edition: 2022-12-31 · In force
46. Rights of non-consensual creditors
(1)The right of a non-consensual creditor has priority over a security right if, before the security right is made effective against third parties, the non-consensual creditor has registered a notice with the Registrar.(2)If a security right is made effective against third parties before the non-consensual creditor registers a notice, the security right has priority, but that priority is limited to credit extended by the secured creditor—(a)within thirty working days from the time the secured creditor received a notification from the non-consensual creditor that the non-consensual creditor had registered a notice with the Registrar; or(b)pursuant to an irrevocable commitment in a fixed amount agreed between the grantor and the secured creditor, if the commitment was made before the secured creditor received a notification from the non-consensual creditor that the non-consensual creditor had registered a notice.(3)A possessory lien on goods which secures payment or performance of an obligation for services or materials furnished with respect to goods by a person in the ordinary course of the person's business has priority over a security right in the goods as long as the holder of the possessory lien remains in possession of the goods.