22 Oct 2013
GIBBSTON DOWNS WINES LIMITED AND RFD FINANCE NO 2 LIMITED V PERPETUAL TRUST LIMITED & ORS CA367/2012 [2013] NZCA 506
- Citation
- [2013] NZCA 506
- Court
- Court of Appeal
The subordination agreement between PFS and C+M did not expire on 31 March 2010 merely because that date appeared on the Register; registration under s159 is disclosure only and does not define the agreement's term. On the facts an implied term (business efficacy) is to be read into the subordination that it endure until the C+M advance was repaid or its security otherwise satisfied. Assignments to Perpetual and to the appellants carried the benefits and burdens of the subordination (assignees are bound and take priority status as at transfer). Appeal dismissed.