A personal undertaking from a person who is impecunious and likely to be made bankrupt will rarely, if ever, be sufficient to resist a security for costs order, even under s 1335 of the Corporations Act. The Vintage Marine principle that such undertakings are a 'very powerful consideration' is confined to s 1335 applications and does not apply under the UCPR. On a security for costs application, the Court will not pre-empt the costs discretion by assessing security on the indemnity basis, even where the applicant has a contractual entitlement to indemnity costs. Where surplus mortgage proceeds have been applied to legal costs, the Court will make adjustments to ensure no unfair disadvantage from the timing of the application.
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