21 May 2019
BROWN v HEARTLAND BANK LIMITED [2019] NZHC 1105
- Citation
- [2019] NZHC 1105
- Court
- High Court
Absolute legal assignment of invoices to a factor does not prevent those debts being treated as 'accounts receivable' subject to the PPSA and Schedule 7 preferential regime; preferential creditors are entitled to priority over assigned accounts receivable unless the transferee's perfected security interest arose from a transfer for which 'new value' (as defined in the PPSA) was provided by the transferee; on the evidence the shareholder current account ($20,000) is an account receivable and Heartland did not provide new value for it; the work‑in‑progress invoiced post‑liquidation is not an ac…