National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

See section 3 of the National Credit Act.

PART 3 - RELATED MORTGAGES AND GUARANTEES  

Division 1 - Mortgages  

51   Assignment or disposal of mortgaged property by mortgagor  

51(1)    
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.

51(2)    
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).

51(3)    
The court may, on application by a mortgagor, authorise the mortgagor to dispose of mortgaged property on conditions determined by the court if:

(a) the credit provider fails within a reasonable time to reply to a request for consent to do so by the mortgagor; or

(b) consent is unreasonably withheld, or unreasonable conditions are attached to the consent.

51(4)    
Subsection (1) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code .