56Judgment in legal proceedings about a security

56 Judgment in legal proceedings about a security

(1) This section applies if: (a) a person has given the CEO a security under the Act; and (b) the CEO obtains a judgment against the person in legal proceedings about the security. (2) The CEO may retain as much of the security as is needed to satisfy the judgment and costs. (3) Any security retained becomes the property of the Commonwealth. (4) If the security does not satisfy the judgment and costs, the CEO may enforce the judgment to obtain payment of the balance remaining due under the judgment. (5) If the CEO is entitled to retain a security that is not cash, the CEO may dispose of the security: (a) by auction or private sale; or (b) in another manner that is, in the CEO’s opinion, most favourable to the person. (6) If the CEO disposes of a security under subsection (5): (a) the net proceeds of the disposal may be retained as described in subsection (2); and (b) a certificate: (i) signed by the CEO; and (ii) setting out the security disposed of and the net proceeds of the disposal; is taken to be proof of the disposal and the amount of the net proceeds. (7) The person is entitled to as much (if any) of a security as has not been retained by the CEO under this section if the security: (a) expires; or (b) is cancelled, discharged, released or satisfied.