(1)  If –

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

(b) a restraining order in relation to the offence or a related offence is or has been made against all or some of the property of that person –

there is created, on the making of the later of the orders, a charge on the property to which the restraining order applies to secure the payment to the State of the penalty amount.

(2)  If a charge is created under subsection (1) on property of a person, the charge ceases to have effect in respect of the property –

(a) upon the discharge of the pecuniary penalty order; or

(b) upon payment to the State of the penalty amount in satisfaction of the pecuniary penalty order; or

(c) upon the sale or other disposition of the property –

(i) under an order under section 31 ; or

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

(iii) if the restraining order directed the Public Trustee to take custody and control of the property – by the owner of the property with the consent of the Public Trustee; or

(d) upon the sale of the property to a purchaser in good faith for value who, at the time of purchase, had no notice of the charge –

whichever occurs first.

(3)  A charge created on property under subsection (1) upon the making of a pecuniary penalty order –

(a) is subject to every charge or encumbrance to which the property was subject immediately before the later order under section 31 was made and, in the case of land under the Land Titles Act 1980 , is subject to every mortgage, lease or other interest recorded in the register kept under that Act; and

(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)  If a charge is created under subsection (1) on property of a particular kind and a law of Tasmania provides for the registration of title to, or charges over, property of that kind, the Public Trustee or an authorized officer 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 is, for the purposes of subsection (2) (d) , taken to have had notice of the charge at the time of the purchase or acquisition.

(5)  If a charge under this section relates to land under the Land Titles Act 1980 , the charge is of no effect until it is registered under that Act.