Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.3B - CRISIS RESOLUTION FOR CS FACILITY LICENSEES  

Division 6 - Moratorium on action during statutory management or compulsory transfer  

Subdivision C - Protection of body corporate ' s property  

SECTION 844B   RESTRICTIONS ON EXERCISE OF THIRD PARTY PROPERTY RIGHTS  

General rule

844B(1)    
Subject to subsection (2) of this section, while section 842A applies to a body corporate, the restrictions set out in the following table apply in relation to the exercise of the rights of a person (the third party ) in:

(a)    property of the body; or

(b)    other property used or occupied by, or in the possession of, the body, as set out in the table.

Restrictions on exercise of third party rights
Item	Column 1 If the third party is …	Column 2 then …
1	(a)	a secured party in relation to property of the body corporate; and	the third party cannot enforce the security interest.
	(b)	is not otherwise covered by this table
2	a secured party in relation to a possessory security interest in the property of the body corporate	the third party cannot sell the property, or otherwise enforce the security interest.
3	a lessor of property used or occupied by, or in the possession of, the body corporate, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in goods arising out of a lease of the goods	the following restrictions apply:
		(a)	distress for rent must not be carried out against the property;
		(b)	the third party cannot take possession of the property or otherwise recover it;
		(c)	if the third party is a PPSA secured party - the third party cannot otherwise enforce the security interest.
4	an owner (other than a lessor) of property used or occupied by, or in the possession of, the body corporate, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in the property	the following restrictions apply:
		(a)	the third party cannot take possession of the property or otherwise recover it;
		(b)	if the third party is a PPSA secured party - the third party cannot otherwise enforce the security interest.

Note: The property of the body includes any PPSA retention of title property of the body corporate.

Exceptions

844B(2)    
The restrictions set out in the table in subsection (1) do not apply in relation to the exercise of a third party ' s rights in property if the rights are:

(a)    exercised:

(i) with the Reserve Bank ' s written consent; or

(ii) if the body corporate to which section 842A applies is under statutory management - with the statutory manager ' s written consent; or

(iii) with the leave of the Court; or

(b)    contained in a kind of arrangement prescribed by the regulations for the purposes of this paragraph.

Possessory security interests - continued possession

844B(3)    
If:

(a)    a body corporate ' s property is subject to a possessory security interest; and

(b)    the property is in the lawful possession of the secured party;

the secured party may continue to possess the property while section 842A applies to the body corporate.

Payment Systems and Netting Act 1998 prevails over this section

844B(4)    
If there is any inconsistency between:

(a)    subsections (1) and (3) of this section; and

(b)    the Payment Systems and Netting Act 1998 ;

that Act prevails to the extent of the inconsistency.