Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A secured party may dispose of collateral if the secured party has seized the collateral in the exercise of a right to seize the collateral on default by the debtor (whether under section 123 or otherwise).
Note 1: A secured party may dispose of collateral by purchasing the collateral (see section 129).
Note 2: The person who takes the collateral as a result of the disposal does so free of certain security interests (see section 133).
Note 3: The secured party may act as agent for the grantor in transferring title (see section 141).
(2) A secured party may dispose of collateral under this section:
(a) by private or public sale (including auction or closed tender); or
(b) by lease, if the security agreement so provides; or
(c) if the collateral is intellectual property--by licence.
Note 1: A different rule applies in relation to disposal by purchase (see subsection 129(3)).
Note 2: Paragraph (2)(b) does not apply in relation to collateral that is used predominantly for personal, domestic or household purposes (see subsection 109(5)).
(3) For the purposes of this Act, if collateral is disposed of by lease or licence, the disposal occurs at the time the lease or licence is entered into.
(4) The power to dispose of collateral by a lease or licence must be exercised in accordance with the terms and conditions of the security agreement.
(5) A secured party may, under subsection (1), dispose of the whole or part of the collateral.
Note: The secured party must apply any proceeds etc. of a disposal under this section in accordance with section 140.
(6) The power to dispose of a licence must be exercised subject to:
(a) the terms and conditions of the licence; and
(b) any applicable law of the Commonwealth, a State or a
Territory.