New South Wales Consolidated Acts

CIVIL PROCEDURE ACT 2005 - SECT 126

126 Operation of charging order in relation to specified security interests

(cf Act No 8 1901, section 27)

(1) This section applies to the following kinds of property in relation to a judgment debtor (referred to in this Division as
"security interests" )--

(a) stock and shares in a public company,

(b) money on deposit in a financial institution, being--

(i) money held in the judgment debtor's name in the judgment debtor's own right, or

(ii) money held in the name of some other person in trust for the judgment debtor,

(c) any equitable interest in property.

(2) Subject to the uniform rules, a charging order operates, in relation to each security interest specified in the order--

(a) to charge the security interest in favour of the judgment creditor to the extent necessary to satisfy the judgment, and

(b) to restrain the chargee from dealing with the security interest otherwise than in accordance with the directions of the judgment creditor.

(3) A charging order takes effect when it is made.

(4) Despite subsection (3), the judgment creditor may not commence proceedings to take the benefit of a charge arising under a charging order until after the expiration of 3 months from the date of the order.

(5) A charging order entitles the judgment creditor, in relation to the security interests charged by the order, to any relief to which the judgment creditor would have been entitled had the charge been made in the judgment creditor's favour by the judgment debtor.

Note--: Section 106 (1) (c) provides that a judgment debt may be enforced by a charging order only in the case of a judgment of the Supreme Court or the District Court.