Document ID: chunk:federal_register_of_legislation:C2024C00719:section:117
Version: federal_register_of_legislation:C2024C00719
Segment Type: section
Provision Reference: s 117
Character Range: 210559–212943

117  Obligations secured by interests in personal property and land

Scope
 (1) This section applies if:
 (a) the same obligation is secured by:
 (i) a security interest in personal property; and
 (ii) an interest in land; and
 (b) either:
 (i) the secured party's security interest in the personal property has the highest priority; or
 (ii) every other secured party with a security interest in the personal property that has a higher priority has agreed in writing to the secured party's making a decision under this section.
Note 1: This section does not apply in relation to collateral that is used predominantly for personal, domestic or household purposes (see subsection 109(5)).
Note 2: Also, this section does not apply in relation to a security interest in collateral to which consumer credit legislation applies (see section 119).
Note 3: The interest in land might be an interest to which this Act would otherwise not apply (see subsection 8(2)).

Decision by secured party
 (2) The secured party may:
 (a) make a decision to enforce the security interest in the personal property under this Chapter; or
 (b) make a decision to enforce the security interest in the personal property in the same way as the interest in the land may be enforced under the land law.
 (3) In making a decision under subsection (2), the secured party must act reasonably and only take into account the following matters:
 (a) the respective values of the personal property and the land;
 (b) whether there is any connection between, and the nature of any connection between, the personal property and the land;
 (c) whether the land and the personal property are both located in the same State or Territory;
 (d) such other matters as are relevant to the efficient enforcement of the security interest and the interest in the land.

Decision to enforce the security interest under this Chapter
 (4) Enforcing the security interest in the personal property under this Chapter, in accordance with a decision under paragraph (2)(a), does not limit the secured party's rights, remedies and duties with respect to the land.

Meaning of land law
 (5) In this Act:
land law, in relation to an obligation mentioned in paragraph (1)(a), means those provisions of a law of a State or Territory, or of the general law, that relate to the enforcement of the interest in land that secures the obligation.