(1) Except as provided by this section, any priority accorded by this Part to
a charge over another charge does not extend to any liability that, at the
priority time in relation to the first-mentioned charge, is not a present
liability.
(2) Where a registered charge on property of a company secures:
- (a)
- a
present liability and a prospective liability of an unspecified amount; or
- (b)
- a prospective liability of an unspecified amount;
any priority accorded by this Part to the charge over another charge of which
the chargee in relation to the first-mentioned charge does not have actual
knowledge extends to the prospective liability, whether the prospective
liability became a present liability before or after the registration of the
first-mentioned charge.
(3) Where a registered charge on property of a company secures:
- (a)
- a
present liability and a prospective liability up to a specified maximum
amount; or
- (b)
- a prospective liability up to a specified maximum amount;
and the notice lodged under section 263 or 264 in relation to the charge
sets out the nature of the prospective liability and the amount so specified,
then any priority accorded by this Part to the charge over another charge
extends to any prospective liability secured by the first-mentioned charge to
the extent of the maximum amount so specified, whether the prospective
liability became a present liability before or after the registration of the
first-mentioned charge and notwithstanding that the chargee in relation to the
first-mentioned charge had actual knowledge of the other charge at the time
when the prospective liability became a present liability.
(4) Where:
- (a)
- a registered charge on property of a company secures:
- (i)
- a present liability and a prospective liability up to a specified maximum
amount; or
- (ii)
- a prospective liability up to a specified maximum amount;
but the notice lodged under section 263 or 264 in relation to the charge
does not set out the nature of the prospective liability or the maximum amount
so specified; or
- (b)
- a registered charge on property of a company secures a prospective
liability of an unspecified amount;
the following paragraphs have effect:
- (c)
- any priority accorded by this Part to the charge over another charge of
which the chargee in relation to the first-mentioned charge has actual
knowledge extends to any prospective liability secured by the first-mentioned
charge that had become a present liability at the time when the chargee in
relation to the first-mentioned charge first obtained actual knowledge of the
other charge;
- (d)
- any priority accorded by this Part to the charge over another charge of
which the chargee in relation to the first-mentioned charge has actual
knowledge extends to any prospective liability secured by the first-mentioned
charge that became a present liability, as the result of the making of an
advance, after the time when the chargee in relation to the first-mentioned
charge first obtained actual knowledge of the other charge if, at that time,
the terms of the first-mentioned charge required the chargee in relation to
that charge to make the advance after that time, and so extends to that
prospective liability whether the advance was made before or after the
registration of the first-mentioned charge and notwithstanding that the
chargee in relation to the first-mentioned charge had actual knowledge of the
other charge at the time when the advance was made.
Commonwealth Numbered Acts