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CORPORATIONS ACT 2001 - SECT 442CB

Property subject to a security interest or to a retention of title clause--administrator's duty of care in exercising power of sale

             (1)  If the administrator of a company is entitled to dispose of property of the company by way of sale, and the property is subject to a security interest, the administrator must act reasonably in exercising a power of sale in respect of the property.

Note:          A company's property includes its PPSA retention of title property (see the definition of property applying to Part 5.3A, in section 435B).

             (2)  If:

                     (a)  a company is under administration; and

                     (b)  property is used or occupied by, or is in the possession of, the company; and

                     (c)  another person is the owner of the property; and

                     (d)  the property is subject to a retention of title clause under a contract; and

                     (e)  the administrator is entitled to dispose of the property by way of sale;

then, in exercising a power of sale in respect of the property, the administrator must act reasonably.

             (3)  Subsections (1) and (2) do not limit section 180, 181, 182, 183 or 184.



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