This Act shall apply to the followingtransactions:
(a) all transactions where the effect is to secure an obligation with  collateral, including pledge, hypothecation and hire-purchase;
(b) the sale of accounts and secured sales contracts; and
(c) the lease of goods.
Explanation: For the purposes of this Section, the term hypothecation means only the hypothecation of a movable
property.
(2) This Act shall apply to transactions mentioned in Sub-section (1), regardless of anything contained in the agreement entered into between the parties and whether the ownership right in collateral is held by the security
holder or the security giver.
(3) Notwithstanding anything contained in Sub-sections (1) and (2), this Act shall not apply to the following transactions:
(a) the transfer of a claim for compensation of an employee;
(b) a sale of accounts or secured sales contracts as part of the sale of  business out of which they arose;
(c) an assignment of accounts, secured sales contracts or instruments, which is made for the purpose of collection; and
(d) an assignment of a right to payment under a contract to an  assignee that is also obligated to perform under the contract