Powers of attorney given as security
10 Powers of attorney given as security
A power of attorney given as security is a power of attorney (other than an enduring power of attorney)—
whether made under this Act or otherwise and whether made before or after the commencement of this Act; and
given by a principal as security for a proprietary interest of the attorney or the performance of an obligation owed to the attorney; and
that states it is irrevocable.
Despite chapter 2, part 3, a power of attorney given as security is incapable of revocation except with the consent of the attorney while—
the attorney has the proprietary interest, or persons deriving title to the interest under the attorney have the proprietary interest, secured by the power of attorney; or
the obligation, the performance of which is secured by the power of attorney, remains undischarged.
Note—
Also, revocation by attorney provisions dealing with revocation because of impaired capacity, bankruptcy or insolvency or death of an attorney (sections 22 to 24) do not apply to powers of attorney given as security.
A power of attorney given as security for a proprietary interest may be given to—
the person entitled to the interest and the persons deriving title under the person to the interest; or
a representative of a person mentioned in paragraph (a) who may be a specified officer, or the holder of a specified office, by reference to the title of the office concerned.
Note—
office includes position—see the Acts Interpretation Act 1954, schedule 1.
The persons deriving title are taken to be attorneys of the power of attorney for all purposes.
Subsection (4) does not affect a right in the power of attorney to appoint substitute attorneys.
The power of a registered proprietor under the Land Title Act 1994 to revoke a power of attorney is subject to this section.
This Act’s bill:Explanatory memorandum
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