In the courts

Nathans Finance directors sentenced
The High Court has handed down its decision on the penalties to be imposed on three of the directors of Nathans Finance Limited.

Priority determined by meaning of "accounts receivable" in Schedule 7 to Companies Act
The expression "accounts receivable" in Schedule 7 to the Companies Act 1993 includes all "monetary obligations" and is only limited by the exclusions contained in the definition of accounts receivable and in section 23 of the Personal Property Securities Act.

Deed of priority only applies to forced sale
The Court of Appeal has clarified that a deed of priority only regulates entitlements of lenders where there is a forced sale, and does not apply where a mortgagor voluntarily sells the secured property.

Interpretation of trustee limitation clause clears guarantor of personal liability
The High Court has interpreted a trustee limitation clause to exclude personal liability for a trustee guarantor who was also recorded as a guarantor in his personal capacity.

Mortgage broker not bank's agent
The High Court has determined that a mortgage broker was not an agent of a bank when it gave an assurance to a borrower.

Enquiries and information

For more information on any of the cases, articles and features in Financial Services Quarterly, please email Rachel Gowing or call on 64 9 916 8825.