THE CORPORATIONS LAW

CHAPTER 2K - CHARGES

PART 2K.3 - ORDER OF PRIORITY

SECTION 279   PRIORITIES OF CHARGES  

279(1)  [Application]  

Subject to this section, sections 280 to 282, inclusive, have effect with respect to the priorities, in relation to each other, of registrable charges on the property of a company.

279(2)  [Order of priorities subject to consent and agreement]  

The application, in relation to particular registrable charges, of the order of priorities of charges set out in sections 280 to 282, inclusive, is subject to:

(a)  any consent (express or implied) that varies the priorities in relation to each other of those charges, being a consent given by the holder of one of those charges, being a charge that would otherwise be entitled to priority over the other charge; and

(b)  any agreement between those chargees that affects the priorities in relation to each other of the charges in relation to which those persons are the chargees.

279(3)  [Deemed postponement of registered charge]  

The holder of a registered charge, being a floating charge, on property of a company shall be deemed, for the purposes of subsection (2), to have consented to that charge being postponed to a subsequent registered charge, being a fixed charge that is created before the floating charge becomes fixed, on any of that property unless:

(a)  the creation of the subsequent registered charge contravened a provision of the instrument or resolution creating or evidencing the floating charge; and

(b)  a notice in respect of the floating charge indicating the existence of the provision referred to in paragraph (a) was lodged with the Commission under section 263, 264 or 268 before the creation of the subsequent registered charge.

279(4)  [Application of sec 262]  

Where a charge relates to property of a kind or kinds to which a particular paragraph or paragraphs of subsection 262(1) applies or apply and also relates to other property, sections 280 to 282, inclusive, apply so as to affect the priority of the charge only in so far as it relates to the first-mentioned property and do not affect the priority of the charge in so far as it relates to the other property.

279(5)  [Exemptions]  

Sections 280 to 282, inclusive, do not apply so as to affect the operation of:

(a)  the Copyright Act 1968;

(b)  the Designs Act 1906;

(c)  the Life Insurance Act 1995;

(d)  the Patents Act 1952; or

(e)  the Trade Marks Act 1955.