Commonwealth Consolidated Acts Commonwealth Consolidated ActsScope
(1) This section applies if:
(a) a secured party makes a decision (under paragraph 117(2)(b)) to enforce the security interest in the personal property in the same way as the interest in the land may be enforced under the land law; and
(b) unless section 144 applies, the secured party gives a notice in accordance with subsection (2) to the following persons:
(i) the grantor;
(ii) a secured party with a security interest in the personal property that is perfected immediately before the decision under paragraph 117(2)(b) is made;
(iii) any person who, by the time the secured party gives the notice, has notified the secured party in writing that the person claims an interest in the personal property.
(2) A notice is given in accordance with this subsection if:
(a) the notice is in the approved form; or
(b) the notice:
(i) contains a description of the personal property to which the notice relates; and
(ii) sets out the effect of this section.
How security interest is to be enforced
(3) The secured party may enforce the security interest in the same way, with any necessary modification, as the interest in the land may be enforced under the land law.
(4) Subject to this section, and with any necessary modification, law in the same terms as that of the land law applies under this Act for the purposes of the enforcement of the security interest.
Example: The secured party has the same rights, remedies and duties in relation to the enforcement of the security interest in the personal property as the secured party has in relation to the enforcement of the interest in the land.
Note: The effect of this subsection is not to adopt the land law as such, but to apply law to the same effect as the land law (with any necessary modification, and subject to this section).
(5) The regulations may modify the law that applies by virtue of subsection (4) in order to facilitate its application to the enforcement of security interests in the personal property.
Note: For the meaning of modification , see section 10.
Additional law that applies
(6) Section 140 (distribution of proceeds), section 117 and this section apply to the enforcement of the security interest in the personal property. Otherwise, this Chapter does not apply to the enforcement of the security interest in the personal property.
(7) In addition:
(a) the decision of the secured party (the first secured party ) under paragraph 117(2)(b) does not limit the rights of any other secured party (the other secured party ) who has a security interest in the personal property (whether granted before or after the first secured party's security interest); and
(b) the other secured party has standing in proceedings taken by (or on behalf of) the first secured party in enforcing the first secured party's security interest under this section; and
(c) the other secured party may apply to a court for the conduct of a judicially supervised sale for the purposes of enforcing the first secured party's security interest under this section; and
(d) the court may grant the application.
Note: For which courts have jurisdiction, and for transfers between courts, see Part 6.2.
Exercise of powers etc. under applied law
(8) The Minister may make an agreement with the appropriate Minister of a State or Territory in relation to the exercise or performance of a power, duty or function (not being a power, duty or function involving the exercise of judicial power) by an authority of the State or Territory for the purposes of the law that applies by virtue of subsection (4).
(9) If such an agreement is in force, the power, duty or function may or must be exercised or performed accordingly.
(10) The Minister may make an agreement with the appropriate Minister of a State or Territory for the variation or revocation of an agreement made under this section in relation to the State.
(11) An agreement made under subsection (8) or (10) is not a legislative instrument.
This section does not affect land laws
(12) To avoid doubt, nothing in this section is intended to modify a land law, or to affect its operation.