Document ID: chunk:federal_register_of_legislation:C2025C00185:section:433:p1
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 433 (pt 1/2)
Character Range: 1482724–1485295

433  Property subject to circulating security interest—payment of certain debts to have priority
 (2) This section applies where:
 (a) a receiver is appointed on behalf of the holders of any debentures of a company or registered body that are secured by a circulating security interest, or possession is taken or control is assumed, by or on behalf of the holders of any debentures of a company or registered body, of any property comprised in or subject to a circulating security interest; and
 (b) at the date of the appointment or of the taking of possession or assumption of control (in this section called the relevant date):
 (i) the company or registered body has not commenced to be wound up voluntarily; and
 (ii) the company or registered body has not been ordered to be wound up by the Court.
 (3) In the case of a company, the receiver or other person taking possession or assuming control of property of the company must pay, out of the property coming into his, her or its hands, the following debts or amounts in priority to any claim for principal or interest in respect of the debentures:
 (a) first, any amount that in a winding up is payable in priority to unsecured debts pursuant to section 562;
 (b) next, if an auditor of the company had applied to ASIC under subsection 329(6) for consent to his, her or its resignation as auditor and ASIC had refused that consent before the relevant date—the reasonable fees and expenses of the auditor incurred during the period beginning on the day of the refusal and ending on the relevant date;
 (c) subject to subsections (6) and (7), next, any debt or amount that in a winding up is payable in priority to other unsecured debts pursuant to paragraph 556(1)(e), (g) or (h) or section 560.
 (4) In the case of a registered body, the receiver or other person taking possession or assuming control of property of the registered body must pay, out of the property of the registered body coming into his, her or its hands, the following debts or amounts in priority to any claim for principal or interest in respect of the debentures:
 (a) first, any amount that in a winding up is payable in priority to unsecured debts pursuant to section 562;
 (b) next, any debt or amount that in a winding up is payable in priority to other unsecured debts pursuant to paragraph 556(1)(e), (g) or (h) or section 560.
 (5) The receiver or other person taking possession or assuming control of property must pay debts and amounts payable pursuant to paragraph (3)(c) or (4)(b) in the same order of priority as is prescribed by