Victorian Consolidated Legislation

Motor Car Traders Act 1986 - SECT 50

Proceeds of sale or disposal to be held on trust

50. Proceeds of sale or disposal to be held on trust

If a motor car trader-

   (a)  acquires a motor car from a person other than a motor car trader or
        special trader on the condition or understanding that the trader will
        procure the cancellation of a security interest affecting the motor
        car; and

   (b)  sells or otherwise disposes of the motor car without first procuring
        the cancellation of that security interest-

the motor car trader shall be deemed to have received the proceeds of sale or
disposal (other than any part of the proceeds that exceeds the amount
necessary to procure the cancellation of the security interest) on trust for
the person from whom the trader acquired the motor car.