Document ID: chunk:federal_register_of_legislation:F2024C01249:reg:3:p32
Version: federal_register_of_legislation:F2024C01249
Segment Type: reg
Provision Reference: reg 3 (pt 32/60)
Character Range: 263333–266117

control, of property of the company for that purpose; or
 (iv) appointed a person so as to enter into possession or assume control (whether as agent for the secured party or for the company); and
 (b) the receiver or person is still in office, or the secured party is still in possession or control of the property.

Debts secured by circulating security interests—receiver appointed after restructuring plan made etc.
 (3) Subregulation (4) applies if:
 (a) debts of the company are secured by a circulating security interest in property of the company; and
 (b) after the company's restructuring plan is made, the secured party, consistently with Part 5.3B of the Act:
 (i) appoints a receiver of property of the company under a power contained in an instrument relating to the security interest; or
 (ii) obtains an order for the appointment of a receiver of property of the company for the purpose of enforcing the security interest; or
 (iii) enters into possession, or assumes control, of property of the company for that purpose; or
 (iv) appoints a person to enter into possession or assume control (whether as agent for the secured party or for the company).
 (4) A right of indemnity of the restructuring practitioner under regulation 5.3B.43 has priority over those debts only in so far as it is a right of indemnity for debts incurred, or remuneration accruing, before written notice of the appointment, or of the entering into possession or assuming of control, as the case may be, was given to the restructuring practitioner.

Debts secured by circulating security interests—priority over right of indemnity in relation to repayment of money borrowed etc.
 (5) A right of indemnity under regulation 5.3B.43 does not have priority over debts of the company that are secured by a circulating security interest in property of the company, except so far as the secured party consents in writing, to the extent that the right of indemnity relates to debts incurred for:
 (a) the repayment of money borrowed; or
 (b) interest in respect of money borrowed; or
 (c) borrowing costs.

5.3B.45  Lien to secure indemnity
 (1) To secure a right of indemnity under regulation 5.3B.43, the restructuring practitioner has a lien on the company's property.
 (2) A lien under subregulation (1) has priority over another security interest only in so far as the right of indemnity under regulation 5.3B.43 has priority over debts secured by the other security interest.

Division 4—The restructuring practitioner

5.3B.46  Authority
  This Division is made for the purposes of subsection 456G(1) of the Act.

5.3B.47  Company must notify restructuring practitioner of certain matters
 (1) The directors of a company that has made a restructuring plan that has not terminated must, within 2