Document ID: chunk:federal_register_of_legislation:C2013C00609:clause:1_441ea
Version: federal_register_of_legislation:C2013C00609
Segment Type: clause
Provision Reference: sch 1 cl 441EA
Character Range: 30595–31709

441EA  Sale of property subject to a possessory security interest

Scope
 (1) This section applies if:
 (a) a company is under administration; and
 (b) property of the company is subject to a possessory security interest; and
 (c) the property is in the possession of the secured party; and
 (d) the secured party sells the property.

Distribution of proceeds of sale
 (2) The secured party is entitled to retain proceeds of the sale as follows:
 (a) if the net proceeds of sale equals the debt secured by the possessory security interest—the secured party is entitled to retain the net proceeds;
 (b) if the net proceeds of sale exceeds the debt secured by the possessory security interest—the secured party is entitled to retain so much of the net proceeds as equals the amount of the debt secured by the security interest, but must pay the excess to the administrator on behalf of the company;
 (c) if the net proceeds of sale fall short of the debt secured by the possessory security interest—the secured party is entitled to retain the net proceeds.

Subdivision C—Property not subject to security interests