Assignment or disposal of mortgaged property by mortgagor
51 Assignment or disposal of mortgaged property by mortgagor
A mortgagor must not assign or dispose of property that is subject to a mortgage without the credit provider’s consent or the authority of the court under subsection (3).
Criminal penalty: 50 penalty units.
The credit provider must not unreasonably withhold consent or attach unreasonable conditions to the consent (but a condition requiring security over property of an equivalent kind and value is not to be regarded as unreasonable).
The court may, on application by a mortgagor, authorise the mortgagor to dispose of mortgaged property on conditions determined by the court if:
the credit provider fails within a reasonable time to reply to a request for consent to do so by the mortgagor; or
consent is unreasonably withheld, or unreasonable conditions are attached to the consent.
Subsection (1) is an offence of strict liability.
For strict liability, see section 6.1 of the Criminal Code.
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