Water Management Act 2000

A security holder (or a receiver referred to in section 115A of the Conveyancing Act 1919) may transfer the access licence or holding in an access licence over which the security interest is held under this section if—

default is made in the payment of any debt or performance of any other obligation under a contract or other legally enforceable arrangement secured by the security interest, and

notice is served, in accordance with the regulations, on the holder or co-holder of the licence who is in default (the defaulter), on any other person having a registered security interest (whether or not having less priority), or who has registered a caveat, over the licence or holding and on the Minister, and

the defaulter fails, for a period of not less than 30 days after service of the notice, to rectify the default, and

the security holder or receiver offers the licence or holding for sale, and

the security holder or receiver takes all reasonable steps to secure the highest possible amount by the sale, and

application is made to the Minister in the approved form, to record the transfer of the licence or holding in the Access Register to give effect to the sale, or, if the security holder is unable to realise the money secured by the security interest by sale after taking all reasonable steps to do so, to record the transfer of the licence or holding to the security holder in the Access Register.

The purchase money from a sale under this section is to be applied as follows—

firstly, in payment of any outstanding fees, charges or administrative penalties incurred in respect of the licence or holding,

secondly, in payment of the expenses of the sale and costs of the transfer,

thirdly, in payment of money then due or owing to any holders of registered security interests over the licence or holding in order of their priority,

fourthly, in payment of any residue to the defaulter.

For the purposes of a transfer under this section, the security holder is taken to be the holder or co-holder of the licence and, accordingly—

the security holder may do any thing necessary to effect the transfer and may give any discharge to the transferee that could be given by the holder or co-holder of the licence, and

the transferee need make no enquiry in relation to the sale that the purchaser would not be required to make of the holder or co-holder of the licence.

On registration of the transfer, the licence or holding is held by the transferee freed and discharged from the registered security interest and any other registered security interest over the licence or holding of less priority. Otherwise the transferee holds the licence or holding with an equivalent interest in the licence or holding to the interest held by the defaulter and subject to the same conditions and obligations (including the payment of any outstanding fees, charges or administrative penalties incurred in respect of the licence or holding) to which the defaulter would, but for the transfer, be subject under this Act.

An affected person may apply, in accordance with rules of court, to the Land and Environment Court for an order prohibiting the registration of the transfer of an access licence or holding in an access licence under this section. The Court may make such an order if it is satisfied that the security holder or receiver has failed to comply with the requirements of subsection (1) or (2) with respect to the transfer of the licence or holding.

If a security holder or receiver fails to comply with the requirements of subsection (1) or (2) with respect to the transfer of an access licence or holding in an access licence under this section, the security holder is liable to pay to any affected person who suffers pecuniary loss that is attributable to that failure compensation with respect to that loss.

The compensation is recoverable in proceedings in the Land and Environment Court by the person who claims to have sustained the loss.

In this section—