Australian Capital Territory Consolidated Acts

SALE OF MOTOR VEHICLES ACT 1977 - SECT 32G

If, under section 32E (Purchasing motor vehicle with registrable interest) the purchaser of a motor vehicle acquires the vehicle free from a registrable interest but, at the time of the acquisition, only part of the purchase price is paid to the seller—

        (a)     the creditor who had the registrable interest is, to the extent of the amount that is owed by the debtor to the creditor under the interest, subrogated to the rights that, apart from the subrogation, the seller would have in relation to payment by the purchaser of the balance of the purchase price; and

        (b)     the purchaser obtains a good discharge—

              (i)     as against the debtor—for any payment of part of the purchase price made under paragraph (a) to the creditor; and

              (ii)     as against the debtor and the creditor—for any payment of part of the purchase price made before the purchaser has written notice of the rights of the creditor under that paragraph.