31Charge on property

31 Charge on property

31 Charge on property

(1) If the Supreme Court makes a proceeds assessment order or unexplained wealth order against a person, all the interests of the person in property are, while the assessed amount remains unpaid, charged in favour of the Crown to the extent necessary to secure payment of the assessed amount.

(2) A charge created by subsection (1) on the making of a proceeds assessment order or unexplained wealth order ceases to have effect—

(a) if the proceeds assessment order or unexplained wealth order is discharged on the hearing of an appeal against the making of the order, or

(b) on payment to the Treasurer of the assessed amount, or

(c) on the bankruptcy of the person subject to the order, or

(d) on the sale or other disposition of the interest charged under the authority of this Act except under section 10B (4) (b) or 14, or

(e) on the sale of the interest charged to a purchaser for sufficient consideration who, at the time of purchase, had no notice of the charge,

whichever first occurs.

(3) A charge that, on the making of a proceeds assessment order or unexplained wealth order, is created by subsection (1) over an interest in property—

(a) is subject to every encumbrance on the property that came into existence before the charge and that would, apart from this paragraph, have priority over the charge, and

(b) has priority over all other encumbrances, and

(c) subject to subsection (2), is not affected by any change of ownership of the interest charged.

(4) If a charge is created by subsection (1) on an interest in property of a particular kind and the provisions of any law, whether or not a law of the State, provide for the registration of title to, interests in, or charges over, property of that kind, the NSW Trustee and Guardian or an appropriate officer may cause the charge so created to be registered under the provisions of that law.

(5) Section 73 (2) of the Personal Property Securities Act 2009 of the Commonwealth is declared to apply to a charge created by subsection (1).

s 31: Am 2009 No 49, Sch 2.17 [1]; 2009 No 92, Sch 1 [8]; 2010 No 57, Sch 1.5 [1]; 2010 No 65, Sch 1 [5].