Joshua, a friend of Mr Chao's, has started up a boating shop in Auckland called Joshua Boating Supplies Limited (JBL). JBL sells boats and boating supplies including a range of jet boats. Joshua raised finance through the New Zealand Savings Bank (NZSB) who granted him a $100,000 loan to be secured over all the assets of JBL. Joshua signed the loan papers on the 2^nd of May, the loan was advanced on the 3^rd of May and the bank registered the security interest on the 5^th of May.

Joshua subsequently decided to buy an office computer system to streamline his administrative procedures. He bought a system valued at $8,000 on hire purchase from Top Gun Computers Limited. The hire purchase agreement was signed on the 2^nd of June and Joshua took delivery the next day. Top Gun Computers Limited registered their security interest 5 days after delivery.

JBL cannot stay in business. On the 27^th September Joshua sells a jet boat to a customer takes the money and leaves Auckland. When the NZSB realises what has happened they use their powers under their GSA to appoint a receiver over JBL.

Mr Chao wonders who will take priority over the various competing security interests?

Question

Outline the role of a receiver and explain how priority will be determined, under the Personal Property Securities Act, between New Zealand Savings Bank and Top Gun Computers Limited in respect of the office computer system. Also, explain whether the New Zealand Savings Bank can claim back the jet boat from the customer under the Personal Property Securities Act 1999.