Re Lyford - [1990] 3 NZLR 213

Commercial law — Chattels transfer — Validity of instrument — Defeasance — Finance company advanced money to grantor on security of registered instrument by way of security over chattels including a truck which was the subject of an existing hire purchase agreement — Transaction was preceded by a loan agreement between the parties — Grantor was subsequently adjudicated bankrupt — Whether loan agreement was an instrument requiring registration — Whether registered instrument was a successive security and void against Official Assignee — Whether inclusion of truck was a defeasance — Whether defeasance affected only the truck — Whether instrument was void only in respect of truck — Chattels Transfer Act 1924, ss 18, 19, 25, 26 and 34.

Bankruptcy and insolvency — Antecedent transactions — Voidable securities — Bankrupt gave instrument by way of security within 12 months of adjudication — Whether instrument was valid only in respect of principal — Whether principal included part of insurance premium retained by grantee as commission — Whether payments made by bankrupt prior to adjudication should be treated as payments of principal — Insolvency Act 1967, s 57.