Effect of security interest
14 Effect of security interest
The registration of a security interest under
Schedule 4—
provides for a record to be made of the security that has been provided by the holder of the interest in the water licence or water access entitlement to which the security interest relates; and
secures the payment of a debt or the performance of some other obligation under a contract or other legally enforceable arrangement to which the security interest relates; and
if so provided by a specific provision of the Act or these regulations—gives rise to the requirement that certain dealings relating to the water licence or water access entitlement to which the security interest relates requires the consent of the holder of the security interest;
and
ensures that a transfer of the interest subject to the security interest will take effect subject to the security interest unless the security interest is discharged before the transfer occurs; and
gives priority to the security interest over other security interests registered after the security interest, and over all unregistered interests; and
provides the holder of the security interest with a scheme for the enforcement of the security interest in the case of a default by the holder of the interest in the water licence or water access entitlement to which the security interest relates.
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