Commonwealth Consolidated Acts

PROCEEDS OF CRIME ACT 1987 - SECT 50

  (1)   Where:

  (a)   a pecuniary penalty order is made against a person (in this subsection called the defendant ) in reliance on the defendant's conviction of an offence; and

  (b)   a restraining order is, or has been, made against:

  (i)   property of the defendant; or

  (ii)   property of another person in relation to which an order under subsection   28(3) is, or has been, made;

    in reliance on the defendant's conviction of the offence or a related offence or in reliance on the charging, or proposed charging, of the defendant with the offence or a related offence;

then, upon the making of the later of the orders, there is created, by force of this section, a charge on the property to secure the payment to the Commonwealth of the penalty amount.

  (2)   Where a charge is created by subsection   ( 1) on property of a person, the charge ceases to have effect in respect of the property:

  (a)   upon the quashing of the conviction in reliance on which the pecuniary penalty order was made;

  (b)   upon the discharge of the pecuniary penalty order or the restraining order by a court hearing an appeal against the making of the order;

  (c)   upon payment to the Commonwealth of the penalty amount in satisfaction of the pecuniary penalty order;

  (e)   upon the sale or other disposition of the property:

  (i)   under an order under section   49;

  (ii)   by the owner of the property with the consent of the court that made the pecuniary penalty order; or

  (iii)   where the restraining order directed the Official Trustee to take control of the property--by the owner of the property with the consent of the Official Trustee; or

  (f)   upon the sale of the property to a purchaser in good faith for value who, at the time of purchase, has no notice of the charge;

whichever first occurs.

  (3)   A charge created on property by subsection   ( 1):

  (a)   is subject to every encumbrance on the property that came into existence before the charge and that would, apart from this subsection, have priority over the charge;

  (b)   has priority over all other encumbrances; and

  (c)   subject to subsection   ( 2), is not affected by any change of ownership of the property.

  (4)   Where a charge is created by subsection   ( 1) on property of a particular kind and the provisions of any law of the Commonwealth or of a State or Territory provide for the registration of title to, or charges over, property of that kind, the Official Trustee or the DPP may cause the charge so created to be registered under the provisions of that law and, if the charge is so registered, a person who purchases or otherwise acquires an interest in the property after the registration of the charge shall, for the purposes of paragraph   ( 2)(f), be deemed to have notice of the charge at the time of the purchase or acquisition.