Victorian Consolidated Legislation

Motor Car Traders Act 1986 - SECT 48

Cancellation of security interest by motor car trader

48. Cancellation of security interest by motor car trader





(1) A motor car trader must not sell, exchange or otherwise dispose of a motor
car without first procuring the cancellation of-

   (a)  any security interest in the motor car registered under the
        Chattel Securities Act 1987; and

   (aa) if the motor car is not registered under the Motor Car Act 1958 or the
        Road Safety Act 1986 but is registered under the law of another State
        or a Territory, any security interest in the motor car registered
        under the provisions of a law of that State or Territory corresponding
        to the provisions of the Chattel Securities Act 1987 (whether or not
        those provisions are declared under that Act to be a corresponding law
        for the purposes of that Act); and

   (b)  any other security interest in the motor car created by the motor car
        trader or of which the trader has notice.

Penalty: 100 penalty units or imprisonment for 12 months.

(2) Subsection (1) does not apply to a motor car trader who sells, exchanges
or otherwise disposes of a motor car subject to an inventory security interest
if the sale, exchange or disposition is authorised by, and is in accordance
with, the terms of the inventory security interest.