Property subject to a security interest or to a retention of title clause—administrator’s duty of care in exercising power of sale
442CB Property subject to a security interest or to a retention of title clause—administrator’s duty of care in exercising power of sale
If the administrator of a company is entitled to dispose of property of the company by way of sale, and the property is subject to a security interest, the administrator must act reasonably in exercising a power of sale in respect of the property.
A company’s property includes its PPSA retention of title property (see the definition of property applying to Part 5.3A, in section 435B).
If:
a company is under administration; and
property is used or occupied by, or is in the possession of, the company; and
another person is the owner of the property; and
the property is subject to a retention of title clause under a contract; and
the administrator is entitled to dispose of the property by way of sale;
then, in exercising a power of sale in respect of the property, the administrator must act reasonably.
Subsections (1) and (2) do not limit section 180, 181, 182, 183 or 184.
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