This title is a systematic and critical examination of the many and varied statutory provisions which may operate to invalidate securities taken by credit-providers when a borrower runs into financial difficulties. The book contains practical advice and commentary, having been written by a leading insolvency practitioner with over 20 years experience in the area, first as a Chartered Accountant and registered liquidator and later as a partner in a major Australian legal firm. It is particularly topical in the current climate of rising interest rates with lenders anxious to ensure that securities taken by them remain intact if their borrowers default. On the flip-side of the coin however, where a borrower does fall into financial difficulties, a bankruptcy trustee or company liquidator will scrutinise the legislative provisions for ways to have the securities declared void. The author analyses significant parts of the law in this area, which have never been coherently dealt with elsewhere, and makes a conscious effort to review both the legislative provisions and the more recent judicial pronouncements. He finds what he believes are numerous anomalies or "loop holes". An important book for: practitioners (both accountants and lawyers practising in the insolvency field), banks and other credit-providers who have a financial stake in ensuring that securities taken by them are not disturbed upon the insolvency of their customers; drafters of commercial legislation dealing with insolvency issues; and scholars interested in the subject of insolvency generally.

Table of Contents:
Definitions and the Pari Passu Rule Introduction The rationale behind the avoidance provisions The legislative deficiencies The meaning of "securities" Over what property may a security interest be given? Security interests in other jurisdictions The meaning of "insolvent" Presumptions of insolvency Conclusion Corporations Law Position before the Corporate Law Reform Act 1992 Position subsequent to the Corporate Law Reform Act The new provisions Sections 266 and 267 of the Corporations Law Romalpa clauses and registrable charges The interaction between the voidable transaction provisions and duties of directors Jurisdictional considerations Provisions which avoid charges under the Corporations Law: The effect on secured creditors and receivers Conclusion Bankruptcy Act The current legislation Sections 120, 121 and 122 of the Bankruptcy Act 1966 before amendment Time limitation provisions Bankruptcy Legislation Amendment Bill 1995 Bankruptcy Legislation Amendment Bill/Act 1996 Conclusion Other Invalidating Legislation Introduction Sections 228 and 229 of the Property Law Act 1974 (Qld) Proposed amendments to personal property securities legislation The Consumer Credit Code The Trade Practices Act 1974 (Cth) Contracts Review Act 1980 (NSW) Common Theme - Summary of Legislative Deficiencies Is there a common theme with the avoidance provisions? Corporations Law Provisions which avoid charges under the Corporations Law: The effect on secured creditors and receivers Bankruptcy Act Other invalidating legislation Summary