Australia: Charges, Mortgages, Indemnities

Queensland money judgments do not automatically transfer assets or compel payment, leaving creditors to navigate enforcement procedures tailored to the debtor's actual holdings. Two primary remedies—enforcement warrants for seizure and sale, and charging orders for investment property—offer distinct pathways, each with specific requirements, limitations, and strategic considerations that creditors must weigh before proceeding.

A Queensland Supreme Court case demonstrates how a poorly drafted deed of priority left a lender unable to recover $32.3 million in development completion costs ahead of a junior lender's debt. The decision reveals critical gaps in standard priority deed language when a developer collapses and a mortgagee must fund completion from their own resources.

When does a high default interest rate cross the line from legitimate compensation to an unenforceable penalty? A recent NSW Supreme Court case examines the principles governing default interest provisions in loan agreements, revealing the critical factors lenders must consider when structuring their interest rate terms. The decision provides essential guidance on what evidence lenders need to justify material increases in default rates and how courts will assess whether such provisions constitute genuine p

This case is a reminder that creditors should carefully identify and assess any restrictions imposed on enforcement of security interests under a DOCA.

Overview of the various forms of securities utilised by lenders to protect their interests when extending credit.

On 18 September 2025 ASIC issued interim stop orders in relation to three credit fund products and on 19 September 2025...

When can a mortgagee claim a right to retain reasonable security for costs of anticipated litigation with a mortgagor?

A notice of assignment of debt is required by Queensland law when a debt is assigned (transferred) to a new creditor.

The recent case of Cooper as Liquidator of Runtong Investment and Development Pty Ltd (In Liq) v CEG Direct Securities Pty Ltd [2024] FCA 6 (Cooper), shed light on when the Court will intervene...