127Carry forward of certain continue bids

127  Carry forward of certain continue bids

 (a) a bidder makes a continue bid on a lot in a round of the secondary stage; and

 (b) the price (the advance price) entered by the bidder in making the bid equals or exceeds the specified price for the lot for the round.

Bid carries forward as continue bid

 (2) In any later round of the secondary stage in which the advance price equals or exceeds the specified price, the bid is treated as a continue bid on the lot.

Bid converts to exit bid

 (3) In the first round of the secondary stage in which the advance price is less than the specified price, the bid is treated as an exit bid.

Example: During round N of the secondary stage, the specified price for a lot is $100,000. The bid increment percentage is 10%.

 If a bidder makes a bid of $130,000 on the lot in round N, then:

(a) for round N+1, the specified price is $110,000, and the bid is taken to be a continue bid for round N+1; and

(b) for round N+2, the specified price is $121,000, and the bid is taken to be a continue bid for round N+2; and

(c) for round N+3, the specified price is $133,100, and the bid is taken to be an exit bid for round N+3.

Actual bids take priority

 (4) Subsections (2) and (3) are subject to any other bid made by the bidder on the lot in the round.

References to valid bids

 (5) To avoid doubt, a reference in this Division to a valid bid includes a reference to a continue bid or exit bid that this section treats as having been made.

Subdivision D—Bringing the secondary stage to an end