Document ID: chunk:federal_register_of_legislation:C2024C00826:clause:1_85:p2
Version: federal_register_of_legislation:C2024C00826
Segment Type: clause
Provision Reference: sch 1 cl 85 (pt 2/2)
Character Range: 879917–881919

as the credit provider and the debtor or mortgagor agree) sell the goods in accordance with subsection (5) or, if no buyer is nominated or the nominated buyer under that subsection does not buy the goods, for the best price reasonably obtainable.

Amount to be credited to debtor or mortgagor
 (7) The credit provider must credit the debtor or mortgagor with a payment equivalent to the proceeds of the sale less any amounts which the credit provider is entitled to deduct from those proceeds. On the sale of the goods, the amount required to pay out the contract becomes due.

Deductions from proceeds
 (8) A credit provider that sells mortgaged goods under this section is entitled to deduct from the proceeds of that sale only the following amounts:
 (a) the amount currently secured by the mortgage in relation to the credit contract or guarantee, not being more than the amount required to discharge the contract or guarantee;
 (b) the amount payable to discharge any prior mortgage to which the goods were subject;
 (c) the amounts payable in successive discharge of any subsequent mortgages to which the goods were subject and of which the credit provider had notice;
 (d) the credit provider's reasonable enforcement expenses;
 (e) the expenses reasonably incurred by the credit provider in connection with the possession and sale of the mortgaged goods.

Notice of amount credited and other matters
 (9) The credit provider must give the debtor or mortgagor a written notice stating the gross amount realised on the sale, the net proceeds of the sale, the amount credited to the debtor or mortgagor and the amount required to pay out the credit contract or the amount due under the guarantee.

Offence—credit provider
 (10) A credit provider that contravenes a requirement of this section commits an offence.
Criminal penalty: 50 penalty units.

Strict liability offence
 (11) Subsection (10) is an offence of strict liability.
Note: For strict liability, see section 6.1 of the Criminal Code.