Section 27 – Effective registration of assignation document
127.Subsection (1) sets out three cases in which a purported registration of an assignation document in the assignations record is ineffective, with the result that the claim will not transfer by reason of registration—
The first case is that the entry does not include a copy of the assignation document.
The second case is that the entry contains an inaccuracy which, as at the time of registration is “
seriously misleading ” (for which see section 28(1)).The third case is that the assignation document is invalid, for example because it is a forgery.
128.As such, it is crucial that the assignation document is included in the entry (and is valid). If anything else is missing from the entry, the registration will still be effective unless the entry is considered seriously misleading by reason of the omission (i.e. the second case cited above applies, under which missing or incorrect text can lead to the entry being considered seriously misleading).
129.The effect of determining whether or not an entry is seriously misleading as at the time of registration is that a supervening inaccuracy (for example, the record being incorrectly restored after an IT malfunction) will not render ineffective any transfer of the claim which took place by reason of the initial effective registration.
130.Subsection (2) makes subsection (1) subject to section 28(1)(c) and (d), with the effect that a registration may be partially effective as regards the claim or as regards co-assignors or co-assignees.
131.Subsection (3) enables an ineffective registration to become effective by means of a correction. The effect of this provision, when read with section 29(5) of the Act, is that the registration becomes effective (and, subject to the other requirements of section 3 being met, the claim transfers) on the date of the correction.
