Commonwealth Consolidated Acts

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Court may limit powers of secured party etc. in relation to secured property

             (1)  This section applies if:

                     (a)  for the purpose of enforcing a security interest in property of a company, the secured party, or a receiver or other person, does or proposes to do an act of a kind referred to in a paragraph of subsection 454D(1); and

                     (b)  the company is under restructuring when the secured party, receiver or other person does or proposes to do the act, or the company later begins to be under restructuring;

but does not apply in a case where section 454C applies.

             (2)  On application by the restructuring practitioner, the Court may order the secured party, receiver or other person not to perform specified functions, or exercise specified powers, except as permitted by the order.

             (3)  The Court may only make an order if satisfied that the secured party's interests will be adequately protected during the restructuring of the company.

             (4)  An order may only be made, and only has effect, during the restructuring.

             (5)  An order has effect despite sections 454D and 454E.

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