Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 23 APRIL 2010

Subrogation: Further Perils For A Mortgagee

Cooper Grace Ward
Cooper Grace Ward
Contributor
Cooper Grace Ward

Cooper Grace Ward

Cooper Grace Ward was established in 1980 and has quickly become one of the largest independent...

View firm profile
Explore more from Cooper Grace Ward

Incurring a shortfall is of concern for a mortgagee. However dealing with surplus sale proceeds after exercising power of sale or dealing with remaining securities after being fully repaid can also be matters for concern.

AustraliaFinance and Banking
Tony Park
Tony Park
Graham Roberts
Graham Roberts
Author LinkedIn connections

Incurring a shortfall is of concern for a mortgagee. However dealing with surplus sale proceeds after exercising power of sale or dealing with remaining securities after being fully repaid can also be matters for concern.

For example, it is not uncommon for a guarantor or a collateral mortgagor who is not the borrower to make a payment to the lender. A lender might also realise some collateral security in reduction of the borrower's debt.

Can the guarantor or collateral mortgagor claim any surplus sale proceeds or claim the remaining security held by the mortgagee in priority to a subsequent registered mortgagee?

The High Court decision of Bofinger v Kingsway Group Limited [2009] HCA 44 provides a warning for an unwary mortgagee.

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Australia's Enhanced Substantial Holding Disclosure And Beneficial Ownership Disclosure Regime Comes Into Effect From 4 December

Australian financial markets face a fundamental shift in disclosure requirements from December 2026, as new rules expand substantial holding obligations beyond traditional voting interests to capture derivative positions and economic exposure. Market participants must now navigate complex calculations involving physically settleable derivatives, cash-settled instruments, and offsetting short positions—with no grandfathering for existing holdings.
AustraliaFinance and Banking
K&L Gates
K&L Gates
Article

New Payment Models Face A Broader Licensing Regime

Australia's payment services landscape is undergoing a fundamental regulatory transformation with the introduction of new legislation that shifts focus from specific technologies to the functions and activities performed by payment service providers. The Treasury Laws Amendment Bill 2026 will replace the existing non-cash payment facility framework with a comprehensive licensing regime that distinguishes between payment products and payment services, potentially capturing previously unregulated payment
AustraliaFinance and Banking
McCabes
McCabes
Article

Australia's Updated Financial Innovation Strategy

The Australian Government has unveiled its Financial Innovation Strategy, introducing a new Financial Innovation Committee and overhauling the Enhanced Regulatory Sandbox framework to better support emerging businesses testing innovative financial products. The strategy encompasses reforms across consumer data rights, digital assets, tokenised infrastructure, and regulatory frameworks designed to position Australia as a leader in financial innovation.
AustraliaFinance and Banking
K&L Gates
K&L Gates
Video

It Depends – Can A Limited Recourse Borrowing Trust Acquire More Than One Asset? (Video)

Under Australian superannuation law, limited recourse borrowing arrangements typically require separate bare trusts for each asset acquired by an SMSF. However, certain exceptions allow multiple assets to be held in a single bare trust, including identical assets purchased simultaneously, permanent fixtures spanning multiple titles, and assets legally required to be dealt with together. Understanding these nuanced rules is critical to avoid serious compliance, tax, and duty implications.
AustraliaWealth Management
Cooper Grace Ward
Cooper Grace Ward
Video

National Safe Work Month – For Life – Why WHS Matters (Video)

October is National Safe Work Month, and Cooper Grace Ward's workplace relations and safety team explores why work health and safety matters for every business. Special counsel Gemma Sharp examines the legal duties of PCBUs and officers to protect workers from both physical and psychosocial hazards, emphasizing that safety must be woven into the fabric of business operations rather than treated as an afterthought.
AustraliaEmployment and HR
Cooper Grace Ward
Cooper Grace Ward
Podcast

Podcast: Inside The Claim With CGW – Flight Risk: Grounded By A Galley Cart

Cooper Grace Ward's Damien Jarrett and Jess Byrne examine Hunter v Alliance Airlines Pty Ltd, a Supreme Court workers' compensation case involving a cabin crew member's back injury from a jammed galley cart. The discussion explores how the case evolved from maintenance and staffing allegations into a training dispute, and examines the court's approach to quantum arguments when the injured worker chose to pursue her own business rather than return to employment.
AustraliaEmployment and HR
Cooper Grace Ward
Cooper Grace Ward
Article

First Right To Disconnect Rulings Clarify The Bar For A Contravention Of The Right To Disconnect Laws

In the first substantive rulings on Australia's right to disconnect laws, the South Australian Employment Tribunal has determined that an Adelaide hairdressing salon did not breach its apprentices' rights despite sending frequent out-of-hours messages via TikTok and Snapchat. The Tribunal drew a critical distinction between unwelcome communication and actually preventing employees from disconnecting, establishing that subjective pressure without demonstrable consequences does not constitute a breach.
AustraliaEmployment and HR
Cooper Grace Ward
Cooper Grace Ward