Victorian Consolidated Legislation

Fair Trading Act 1999 - SECT 32T

Limit of liability under security

32T. Limit of liability under security

If a mortgage, charge, pledge or other security is provided by a person to
secure the obligations of a purchaser under a contract of supply of goods or
services, the amount secured in respect of the liability of that person in
respect of those obligations does not exceed liability in respect of the sum
of-

   (a)  the amount for which the purchaser is liable by reason of the breach
        of the contract of supply of goods or services; and

   (b)  the reasonable costs of, and incidental to, enforcing the mortgage,
        charge, pledge, lien or other security.