71XDealings on default

71X Dealings on default

71X Dealings on default

(1) A security holder (or a receiver referred to in section 115A of the Conveyancing Act 1919) may transfer the access licence or holding in an access licence over which the security interest is held under this section if—

(a) default is made in the payment of any debt or performance of any other obligation under a contract or other legally enforceable arrangement secured by the security interest, and

(b) notice is served, in accordance with the regulations, on the holder or co-holder of the licence who is in default (the defaulter), on any other person having a registered security interest (whether or not having less priority), or who has registered a caveat, over the licence or holding and on the Minister, and

(c) the defaulter fails, for a period of not less than 30 days after service of the notice, to rectify the default, and

(d) the security holder or receiver offers the licence or holding for sale, and

(e) the security holder or receiver takes all reasonable steps to secure the highest possible amount by the sale, and

(f) application is made to the Minister in the approved form, to record the transfer of the licence or holding in the Access Register to give effect to the sale, or, if the security holder is unable to realise the money secured by the security interest by sale after taking all reasonable steps to do so, to record the transfer of the licence or holding to the security holder in the Access Register.

(2) The purchase money from a sale under this section is to be applied as follows—

(a) firstly, in payment of any outstanding fees, charges or administrative penalties incurred in respect of the licence or holding,

(b) secondly, in payment of the expenses of the sale and costs of the transfer,

(c) thirdly, in payment of money then due or owing to any holders of registered security interests over the licence or holding in order of their priority,

(d) fourthly, in payment of any residue to the defaulter.

(3) For the purposes of a transfer under this section, the security holder is taken to be the holder or co-holder of the licence and, accordingly—