Jenny is the general manager of Aztec Mining Ltd which is a mining services company that operates in the Hunter Valley in NSW. Aztec's assets include 20 large industrial vehicles that are worth $100,000 each. The vehicles have huge tyres that are removable and are valued at $5,000 each. The vehicles are covered by a 5-year finance lease with LeaseCo. LeaseCo's contract with Aztec provides that LeaseCo has a security interest over all present and after acquired property of Aztec in order to pay off its lease contracts over the vehicles. LeaseCo registers a financing statement on the PPSR which states that it has a PMSI over the vehicles on 1 February 2015 (a claim for proceeds is also made on the financing statement).

LeaseCo's finance manager is concerned about the security over other assets so LeaseCo registers another financing statement on the PPSR on 20 February 2015 which states that LeaseCo has a PMSI on all of Aztec's equipment. A third financing statement is also registered on the PPSR by LeaseCo on 20 February 2015 covering all present and after acquired property of Aztec (no PMSI is claimed).

Aztec however obtains tyres from TCo Ltd which is a specialised industrial tyre company. The contract between Aztec and TCo includes a retention of title clause which provides that TCo retains title to the tyres until payment is made in full. The supply agreement also provides that Aztec must set aside $10,000 into a separate bank account with Ebank (not Aztec's normal bank) which can be used by TCo to pay its invoices if Aztec is more than 30 days late. TCo registers a financing statement over the tyres and any proceeds as a PMSI on 2 February 2015. TCo's financing statemen mistakenly describes Aztec Mining Ltd (the grantor) as 'Aztorq Mining Services' but the Australian Company Number is correct and this is what is used to search for the grantor. Aztec has an ongoing loan facility with Westbank which covers all present and after acquired property and was registered on the PPSR on 1 January 2015.

Assume that Aztec gets into financial trouble and sells 10 industrial vehicles at a discount in order to generate $750,000 (assume that this is permitted under the terms of the lease and supply agreements). Aztec deposits this in its bank account with Westbank. This is in breach of its contract with TCo which takes enforcement action by writing to Aztec demanding the immediate payment of outstanding amounts or the tyres will be repossessed (as is permitted under TCo's contract).

• What rights does TCo have?

• Assess the priority position under the PPSA between Westbank and LeaseCo.