Duty to inform trustee about security interests
283BE Duty to inform trustee about security interests
If the borrower creates a security interest, it must:
give the trustee written details of the security interest within 21 days after it is created; and
if the total amount to be advanced on the security of the security interest is indeterminate and the advances are not merged in a current account with bankers, trade creditors or anyone else—give the trustee written details of the amount of each advance within 7 days after it is made.
If the advances are merged in a current account the borrower must give the trustee the details in the quarterly report (see subsection 283BF(4)).
This Act’s bill:Explanatory memorandumSecond reading speech
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