19 Sept 2008
WESTPAC NZ LTD V AUCKLAND FINANCE LTD HC AK CIV 2008-404-002431
- Citation
- openlaw-12b7e044_acfc_42c7_979a_205d22a5c572.pdf
- Court
- High Court
Clause 7 must be read subject to clause 4 and the qualifying words 'to the extent and in the manner hereinafter set forth'; clause 7.3 creates a trust only where a mortgagor has breached clause 7.1 by paying AFL without Westpac's prior written consent. Payments by third parties from assets not of the mortgagor, and not in breach of clause 7.1, do not trigger the trust in clause 7.3. Therefore AFL did not become liable to hold the $1,270,771 on trust under clause 7.3 on the facts before the Court.