Document ID: chunk:federal_register_of_legislation:F2024C00980:reg:38
Version: federal_register_of_legislation:F2024C00980
Segment Type: reg
Provision Reference: reg 38
Character Range: 40554–42007

38  Distribution of proceeds of sale of aircraft
 (1) For the purposes of section 68 of the Act, AA must:
 (a) pay the proceeds of sale of a seized aircraft into a trust account approved by the Finance Minister; and
 (b) hold the proceeds in that trust account until they are dealt with in accordance with this section.
 (2) AA must distribute the proceeds in the following order:
 (a) first, in payment of expenses incurred by AA in relation to the performance of any functions, or the exercise of any powers, under this Division or section 65 or 67 of the Act;
 (b) second, in payment of a debt incurred before the registration of the statutory lien, to the extent that the debt is secured by a security interest that:
 (i) is approved under subsection 37(1); and
 (ii) is not a floating charge; and
 (iii) was created before the registration;
 (c) third, in payment of an outstanding amount secured by the statutory lien;
 (d) fourth, in payment of a debt that is not secured, or to the extent that it is not secured, by a security interest of a kind mentioned in paragraph (b).
 (3) After the proceeds are distributed, AA must:
 (a) cause the remainder (if any) of the proceeds to be paid to the person who was the owner of the aircraft immediately before the sale, or to the agent of that person; and
 (b) give a written statement, containing particulars of the distribution, to that person, or to the agent of the person.

Part 5—Miscellaneous