NZ Bank Ltd ('NZ Bank') lends money to Baron Smith Ltd ('Baron Smith') and takes a security interest over all of Baron Smith's present and after-acquired property to secure the loan. NZ Bank registers a financing statement in accordance with the requirements of the Personal Property Securities Act 1999 Act.   

 

Baron Smith then obtains a loan from Good to Go Finance Company Ltd ('Good to Go') to buy a new van on the basis that Good to Go will take a security interest over the van to secure repayment of the loan. Good to Go registers a financing statement in respect of the van five working days after Baron Smith purchases the van.  The loan is for 2-years, with Baron Smith agreeing to pay back the loan in monthly instalments over this period plus interest.

One year later, Baron Smith fails to make two monthly repayments to Good to Go. Good to Go then decides to repossess the van because of these non-payments.  NZ Bank objects, claiming that it has first rights to the van under its security interest.

 

Referring to the relevant provisions of the Personal Property Securities Act 1999 with respect to attachment, perfection, and the rules governing priorities, advise who has first priority to the van.