THE CORPORATIONS LAW

CHAPTER 2K - CHARGES

PART 2K.3 - ORDER OF PRIORITY

SECTION 280   GENERAL PRIORITY RULES IN RELATION TO REGISTERED CHARGES  

280(1)  [Registered charge on property]  

A registered charge on property of a company has priority over:

(a)  a subsequent registered charge on the property, unless the subsequent registered charge was created before the creation of the prior registered charge and the chargee in relation to the subsequent registered charge proves that the chargee in relation to the prior registered charge had notice of the subsequent registered charge at the time when the prior registered charge was created;

(b)  an unregistered charge on the property created before the creation of the registered charge, unless the chargee in relation to the unregistered charge proves that the chargee in relation to the registered charge had notice of the unregistered charge at the time when the registered charge was created; and

(c)  an unregistered charge on the property created after the creation of the registered charge.

280(2)  [Postponement]  

A registered charge on property of a company is postponed to:

(a)  a subsequent registered charge on the property, where the subsequent registered charge was created before the creation of the prior registered charge and the chargee in relation to the subsequent registered charge proves that the chargee in relation to the prior registered charge had notice of the subsequent registered charge at the time when the prior registered charge was created; and

(b)  an unregistered charge on the property created before the creation of the registered charge, where the chargee in relation to the unregistered charge proves that the chargee in relation to the registered charge had notice of the unregistered charge at the time when the registered charge was created.