Commonwealth Consolidated Acts Commonwealth Consolidated ActsGeneral rule
(1) Subject to subsection (2) of this section, while section 842A applies to a body corporate, the restrictions set out in the following table apply in relation to the exercise of the rights of a person (the third party ) in:
(b) other property used or occupied by, or in the possession of, the body, as set out in the table.
Item | Column 1 If the third party is ... | Column 2 then ... |
1 | (a) a secured party in relation to property of the body corporate; and (b) is not otherwise covered by this table | the third party cannot enforce the security interest. |
2 | a secured party in relation to a possessory security interest in the property of the body corporate | the third party cannot sell the property, or otherwise enforce the security interest. |
3 | a lessor of property used or occupied by, or in the possession of, the body corporate, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in goods arising out of a lease of the goods | the following restrictions apply: (a) distress for rent must not be carried out against the property; (b) the third party cannot take possession of the property or otherwise recover it; (c) if the third party is a PPSA secured party--the third party cannot otherwise enforce the security interest. |
4 | an owner (other than a lessor) of property used or occupied by, or in the possession of, the body corporate, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in the property | the following restrictions apply: (a) the third party cannot take possession of the property or otherwise recover it; (b) if the third party is a PPSA secured party--the third party cannot otherwise enforce the security interest. |
Note: The property of the body includes any PPSA retention of title property of the body corporate.
Exceptions
(2) The restrictions set out in the table in subsection (1) do not apply in relation to the exercise of a third party's rights in property if the rights are:
(a) exercised:
(i) with the Reserve Bank's written consent; or
(ii) if the body corporate to which section 842A applies is under statutory management--with the statutory manager's written consent; or
(iii) with the leave of the Court; or
(b) contained in a kind of arrangement prescribed by the regulations for the purposes of this paragraph.
Possessory security interests--continued possession
(3) If:
(a) a body corporate's property is subject to a possessory security interest; and
(b) the property is in the lawful possession of the secured party;
the secured party may continue to possess the property while section 842A applies to the body corporate.
Payment Systems and Netting Act 1998 prevails over this section
(4) If there is any inconsistency between:
(a) subsections (1) and (3) of this section; and
(b) the Payment Systems and Netting Act 1998 ;
that Act prevails to the extent of the inconsistency.