Australian Capital Territory Consolidated Acts

CREDIT ACT 1985 - SECT 112

    (1)     If the mortgagee takes possession (otherwise than under section 106) of goods subject to a regulated mortgage—

        (a)     the mortgagee shall not, without the written consent of the mortgagor given without inducement by the mortgagee, or the authority of the court, sell or otherwise dispose of or part with possession of the goods, or any of the goods, until the end of 21 days after the date of service on the mortgagor of a notice in the form approved under section 256 (Approved forms) for this paragraph relating to rights of the mortgagor in relation to the goods and specifying the estimated value of the goods; and

        (b)     if the mortgagor or the commissioner has made application to the court in relation to the taking of possession of goods by the mortgagee or if the commissioner has referred to the ACAT—

              (i)     under section 74 (3)—an application by the mortgagor for a variation; or

              (ii)     under section 116 (5)—an application by the mortgagor for a postponement;

the mortgagee shall not sell or otherwise dispose of or part with the possession of the goods or any of the goods—

              (iii)     before the court or the ACAT has determined the matter; or

              (iv)     in contravention of a decision by the court or a determination by the ACAT; or

              (v)     if a decision of the court or a determination of the ACAT is made against which an appeal may lie—until the time within which an appeal may be made has ended and an appeal has not been made or, if an appeal is made, until the appeal is withdrawn or has been determined in favour of the mortgagee.

    (2)     A mortgagee that contravenes subsection (1) commits an offence.

Maximum penalty:

        (a)     for an individual—$2 000; and

        (b)     for a corporation—$10 000.

    (3)     Subject to section 114, a mortgagee who (otherwise than under section 106) takes possession of goods subject to a regulated mortgage shall, if the mortgagor requires him or her to do so by written notice served on the mortgagee before he or she sells or otherwise disposes of or parts with possession of the goods, offer the goods for sale to a person introduced by the mortgagor—

        (a)     except as provided by paragraph (b)—for an amount equal to the estimated value specified in the notice under subsection (1) (a); or

        (b)     if the mortgagee claims to be able to sell the goods for a specified amount that is greater than the amount referred to in paragraph (a)—for that specified greater amount.

    (4)     A mortgagee that fails to comply with subsection (3) commits an offence.

Maximum penalty:

        (a)     for an individual—$1 000; and

        (b)     for a corporation—$5 000.