Octaviar: Welcome return to normality

Articles Written by Martin Lovell

As published in Butterworths Corporations Law Bulletin, October 2010 edition

On 1 September 2010 the High Court of Australia handed down its much anticipated decision in the case of Public Trustee of Queensland v Fortress Credit Corp (Aust) 11 Pty Ltd (Octaviar). In a joint decision, the High Court rejected the appeal and resoundingly endorsed the decision of the Queensland Court of Appeal, thus ending 18 months of uncertainty as to when a chargor is required to notify ASIC of variations to a registered charge.

This has significant implications for all secured financings and allows lenders and borrowers to return to a previously well-established market practice.

This article discusses this decision and its implications for borrowers and lenders.

Important Disclaimer: The material contained in this article is comment of a general nature only and is not and nor is it intended to be advice on any specific professional matter. In that the effectiveness or accuracy of any professional advice depends upon the particular circumstances of each case, neither the firm nor any individual author accepts any responsibility whatsoever for any acts or omissions resulting from reliance upon the content of any articles. Before acting on the basis of any material contained in this publication, we recommend that you consult your professional adviser. Liability limited by a scheme approved under Professional Standards Legislation (Australia-wide except in Tasmania).

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