Victorian Consolidated Legislation

Instruments Act 1958 - SECT 72

Right of mortgagee of stock although possession in mortgagor

72. Right of mortgagee of stock although possession in mortgagor

Every mortgage of stock on any station in Victoria which is made bona fide and
for valuable consideration, provided the names of the parties thereto and the
particulars thereof are registered within thirty days after the date thereof
in the office of the Registrar-General in the form or to the effect mentioned
in the Eighth Schedule to this Act, shall be valid in the law to all intents
and purposes, whether the time for payment of the money secured by the
mortgage has arrived or not, notwithstanding the said mortgaged stock are not
delivered over to the mortgagee, but remain and continue in every respect in
the possession order and disposition of the mortgagor his executors or
administrators, or any person claiming under him or them; and the possession
of such mortgaged stock by the mortgagor his executors or administrators, or
any person claiming as aforesaid, shall be to all intents and purposes in the
law the posse ssion of the mortgagee his executors administrators or assigns,
notwithstanding the subsequent bankruptcy or insolvency of the mortgagor his
executors or administrators, or any person claiming as aforesaid, or any
execution against his or their property: Provided that no such mortgage shall
be protected from the operation of any law now or hereafter to be in force
relating to bankruptcy or insolvency, unless such mortgage has been executed
at least sixty days before the date of the order for sequestration, or unless
the consideration thereof is an advance or loan made at the time or in
contemplation of the execution of such mortgage; and any bill of exchange
accepted or indorsed or drawn and indorsed or any promissory note made or
indorsed for the accommodation of the mortgagor or any unpaid purchase money
for any station or the stock thereon, whether secured or not by any bill of
exchange or promissory note, shall be deemed an advance or loan within the
meaning of this section.