Sch 1 (National Credit Code), s 49
In forceMaximum amount which may be secured
Volume 1Chapters 1 to 6 (sections 1 to 322)
Chapter 6Compliance and enforcement
Part 6-1Investigations
Division 1Introduction
49 Maximum amount which may be secured
(1)
A mortgage is void to the extent that it secures an amount, in relation to any credit contract which it secures, that exceeds the sum of the amount of the liabilities of the debtor under the credit contract and the reasonable enforcement expenses of enforcing the mortgage.
(2)
A mortgage is void to the extent that it secures an amount, in relation to any guarantee which it secures, that exceeds the limit of the guarantor’s liability under the guarantee and the reasonable enforcement expenses of enforcing the mortgage.
(3)
This section does not affect a provision of a mortgage permitted by section 47.
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