Corporations Act 2001
During the administration of a company, the restrictions set out in the table at the end of this section apply in relation to the exercise of the rights of a person (the third party ) in property of the company, or other property used or occupied by, or in the possession of, the company, as set out in the table.
Note: The property of the company includes any PPSA retention of title property of the company (see section 435B ).Exception - consent of administrator or leave of court 440B(2)
The restrictions set out in the table at the end of this section do not apply in relation to the exercise of a third party ' s rights in property if the rights are exercised:
(a) with the administrator ' s written consent; or
(b) with the leave of the Court. Possessory security interests - continued possession 440B(3)
If a company ' s property is subject to a possessory security interest, and the property is in the lawful possession of the secured party, the secured party may continue to possess the property during the administration of the company.
|Restrictions on exercise of third party rights|
|Item||If the third party is [mldr ]||then [mldr ]|
|1||a secured party in relation to property of the company, and is not otherwise covered by this table||the third party cannot enforce the security interest.|
|2||a secured party in relation to a possessory security interest in the property of the company||the third party cannot sell the property, or otherwise enforce the security interest.|
|3||a lessor of property used or occupied by, or in the possession of, the company, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in goods arising out of a lease of the goods||the following restrictions apply:|
|(a)||distress for rent must not be carried out against the property;|
|(b)||the third party cannot take possession of the property or otherwise recover it;|
|(c)||if the third party is a PPSA secured party - the third party cannot otherwise enforce the security interest.|
|4||an owner (other than a lessor) of property used or occupied by, or in the possession of, the company, including a secured party (a PPSA secured party ) in relation to a PPSA security interest in the property||the following restrictions apply:|
|(a)||the third party cannot take possession of the property or otherwise recover it;|
|(b)||if the third party is a PPSA secured party - the third party cannot otherwise enforce the security interest.|
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