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Article: Priority Arrangements In Mortgage Enforcement Actions.(Case overview)
- Article from:
- Mondaq Business Briefing
- Article date:
- November 6, 2009
CopyrightCOPYRIGHT 2009 Mondaq Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Ronald John Bofinger & Anor v Kingsway Group Limited Formerly Willis & Bowring Mortgage Investments Limited & Ors
This recent unanimous decision of the High Court of Australia highlights the need for mortgagees to carefully consider the terms contained in their guarantees, as certain provisions can displace priority arrangements between mortgagees in any enforcement action, through rights of subrogation.
Facts
Mr Bofinger was the director of B&B Holdings Pty Ltd (B&B), which was a real estate development company operating in New South Wales. B&B obtained three separate loans from three different financiers and provided security to each ...