Corporations Amendment (Insolvency) Act 2007 (132 of 2007)

Schedule 4   Fine-tuning voluntary administration

Part 3   Liquidation following administration

Corporations Act 2001

62   At the end of section 443E

Add:

(4) If:

(a) debts of a company under administration are secured by a floating charge on property of the company; and

(b) the administrator has a right of indemnity under section 443D;

the right of indemnity, to the extent to which it relates to debts incurred for:

(c) the repayment of money borrowed; or

(d) interest in respect of money borrowed; or

(e) borrowing costs;

does not have priority over the debts mentioned in paragraph (a), except so far as the chargee consents in writing.