New South Wales Consolidated Acts

REGISTRATION OF INTERESTS IN GOODS ACT 1986 - SECT 13

13 Award of compensation for loss by creditor

(1) Where:

(a) application is made for registration of a registrable interest in goods,

(b) whether or not the registrable interest has been registered-a lack of notice of the registrable interest is the result of a certificate issued under section 8 (1) that does not disclose the registrable interest, and

(c) as a result of the lack of notice, the operation of section 9 or a prescribed provision of a corresponding law, in relation to a purchase of the goods, causes the creditor under the registrable interest to sustain a loss,

the Director-General may, on application by the creditor, make an order awarding the applicant compensation for the loss.

(2) Compensation is not payable under this section if the lack of notice referred to in subsection (1) resulted from:

(a) the prime identifier of the goods concerned being incorrectly specified in the application for registration of the registrable interest concerned, or

(b) the fact that the interest concerned was not registered before the end of the next day following the making of the application for registration, or

(c) the cancellation in accordance with the provisions of this Act of the registration of the registrable interest concerned, or

(d) the rejection of the application for registration of the registrable interest because it was not properly made.