Australian Capital Territory Consolidated Acts Australian Capital Territory Consolidated Acts(1) Subject to subsection (3), a mortgagee shall not enter into a mortgage that is not in writing if the property the subject of the mortgage is, or includes, goods.
(2) A mortgagee that contravenes subsection (1) commits an offence.
Maximum penalty:
(a) for an individual—$1 000; and
(b) for a corporation—$5 000.
(3) Subsection (1) is not contravened if—
(a) the mortgage was entered into by the acceptance of an offer in writing signed by the mortgagor to the mortgagee to enter into the mortgage; or
(b) the mortgage arose under an agreement in writing or an agreement made by the acceptance of an offer in writing signed by the mortgagor to the mortgagee; or
(c) the mortgagee lawfully had possession of the goods subject to the mortgage before the mortgage was entered into otherwise than only because of being the supplier of the goods.