Commonwealth Numbered Regulations

1988 NO. 158 CIVIL AVIATION REGULATIONS - REG 276

276. (1) For the purposes of subsection 74 (2) of the Act, the Authority shall
cause the proceeds of the sale of an aircraft under subsection 73 (1) of the
Act to be paid into a trust account approved by the Minister for Finance for
the purposes of this subregulation and to be held in that trust account until
they are dealt with in accordance with this regulation.

(2) The Authority shall cause the proceeds of the sale of an aircraft to be
expended in the following order:

   (a)  first, in payment of any expenses incurred by the Authority in or in
        connection with the performance of any functions or duties, or the
        exercise of any powers, under section 72 or subsection 73 (1) of the
        Act;

   (b)  second, in payment of any debt incurred before the time of
        registration of the statutory lien, being a debt covered by an
        approved security interest (other than a floating charge) created
        before that time;

   (c)  third, in payment of all outstanding amounts covered by the statutory
        lien;

   (d)  fourth, in payment of any debt covered by an
        approved security interest not falling within paragraph (b).

(3) Where the proceeds of the sale of an aircraft have been expended in
accordance with subregulation (2), the Authority shall:

   (a)  cause the remainder (if any) of those proceeds to be paid to the
        person who was the owner of the aircraft immediately before the sale,
        or to the agent of that person; and

   (b)  cause a written statement containing particulars of the expenditure of
        those proceeds to be given to that person, or to the agent of that
        person.

(4) An action does not lie against the Authority or the Commonwealth, or
against an officer, employee or agent of the Authority or the Commonwealth
acting in good faith in the course of the person's employment or agency, as
the case may be, for the recovery of any debt not covered by an approved
security interest.
(5) In this regulation, "approved security interest" means a security interest
in respect of which a claim has been approved under subregulation 275 (3).