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Companies Act 1993

Voluntary administration - Rights of secured creditor, owner, or lessor

239ABN: Charge over perishable property

You could also call this:

“Special rules for handling perishable property under charge during company administration”

If a company in administration has perishable property that is subject to a charge, special rules apply. Even though there are usually restrictions on enforcing charges during administration, these don’t apply to perishable property. This means that if you’re a secured creditor, a receiver, or someone appointed to enforce the charge, you can still do so for perishable property.

The normal rules about transactions during administration also don’t apply to perishable property. If you’re a secured creditor, you can still use your powers related to the perishable property. If you’re a receiver or someone else appointed to deal with the property, you can still carry out your functions and powers related to it.

These special rules for perishable property are exceptions to the general rules that limit what can be done with a company’s property during administration. They exist because perishable property needs to be dealt with quickly before it loses its value.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321567.

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“Rules for enforcing security over collateral in certain financial agreements during voluntary administration”

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“Court can restrict actions of those with rights over a company's property during administration”

Part 15A Voluntary administration
Rights of secured creditor, owner, or lessor

239ABNCharge over perishable property

  1. This section applies if perishable property of a company in administration is subject to a charge.

  2. Nothing in section 239ABC prevents the secured creditor, a receiver, or a person appointed (at any time) as mentioned in paragraph (a), (b), or (d) of the definition of enforce in section 239ABK from enforcing the charge, so far as it is a charge over perishable property.

  3. Section 239Z does not apply in relation to a transaction or dealing that affects perishable property of the company and is entered into, as the case may be,—

  4. in the exercise of a power of the secured creditor as secured creditor; or
    1. in the performance or exercise of a function or power of the receiver or other person.

      Compare
      • Corporations Act 2001 s 441C (Aust)
      Notes
      • Section 239ABN: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).