Salta Constructions Pty Ltd v St George Bank
[2014] VSCA 289
St George Bank was recently successful in the Victorian Court of
Appeal in defending a claim by a second mortgagee disputing St
George's ability to rely on default notices to recover amounts
owing under guarantees.
Facts
In 2004, First State Developments (WA) Pty Ltd
(FSDWA) mortgaged its property in West Perth to St
George. By 2007, the mortgage became security for various loans and
guarantees in the name FSDWA.
In 2009, FSDWA granted two further mortgages over the property
to Salta Constructions. In 2012, St George appointed receivers to
the property which was subsequently sold for $20 million. St George
retained the proceeds of sale as monies it claimed it was owed
pursuant to the secured loans
