Section 69 – Sale: unencumbered acquisition
308.This section provides for the effect of a sale of the encumbered property under section 68 on the rights of:
(a)
any creditor under another security that encumbers the property, and
(b)
any unsecured creditor who has attached or arrested the property in connection with enforcing a court order for payment (diligence).
309.It provides that the purchaser acquires the property free of the pledge that is being enforced, and of any rights in security or diligence which rank equally with or after the pledge.
310.It provides a separate rule for higher ranking rights in security or diligence. These continue to encumber the property unless the relevant creditor consented to the sale.
