Re‑transfer of lease—enforcement of loan security
29 Re‑transfer of lease—enforcement of loan security
Re‑transfer
If:
a person acquires an airport lease; and
the acquisition is by way of the enforcement of a loan security;
the person must transfer the lease to a qualified company:
within 90 days after acquiring the lease; or
if a longer period is specified in a written notice given to the person by the Minister—within that longer period.
Entry into possession
If:
an airport lease is subject to a loan security; and
the lender enters into possession of the land to which the lease relates; and
the entry into possession is by way of the enforcement of the loan security;
the lender must cause the lease to be transferred to a qualified company:
within 90 days after the lender entered into possession; or
if a longer period is specified in a written notice given to the lender by the Minister—within that longer period.
Offence
A person commits an offence if:
the person is subject to a requirement to transfer a lease under subsection (1) or (1A); and
the person engages in conduct; and
the person’s conduct contravenes the requirement.
Penalty: 400 penalty units.
Strict liability
Strict liability applies to paragraph (2)(a).
For strict liability, see section 6.1 of the Criminal Code.
Court orders
If:
a person contravenes subsection (1) or (1A) in relation to an airport lease; and
the Minister applies to the Federal Court for an order terminating the lease;
the court may make such orders as the court considers appropriate for the purpose of terminating the lease.
Criteria for making order
In deciding whether to make such an order, the court must have regard to:
whether the person made reasonable efforts to obtain the Minister’s approval for the transfer of the lease to another person; and
the reasonableness of the Minister’s decisions under paragraph (1)(d) or (1A)(e) in relation to the lease; and
such other matters (if any) as the court considers relevant.
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