Section 121G — Land Transfer Act 1952: Mortgage of licence

121G Mortgage of licence (1) On the registration of a mortgage of a registered licence, every share certificate issued by the company in respect of the shares to which the licence relates must be produced to the Registrar who must make an entry on it that the licence is subject to the mortgage. (2) On the registration of a discharge of the mortgage, the Registrar must, when the share certificate is produced to the Registrar for that purpose, cancel that entry. (3) The Registrar must notify the company in writing of the registration of a mortgage of a licence which notice must contain particulars of the mortgage and the name, occupation, and address of the mortgagee. (4) The Registrar must notify the company in writing of the registration of a discharge of a mortgage of a licence. (5) On receiving a notice under subsection (3) or subsection (4) of this section, the company must— (a) Record the particulars of the mortgage or of the discharge, as the case may be, on any office copy of the share certificate and of the licence held by the company; and (b) Record in its share register, against the entry relating to the licence, the fact that the licence has been mortgaged, together with the registered number of the mortgage, or, as the case may be, that the mortgage has been discharged. (6) A company that issues a new share certificate to replace a certificate that has been lost or defaced and on which particulars of a mortgage of a licence had been recorded must record those particulars on the new certificate. (7) Where a company acts in contravention of or fails to comply with subsection (5) or subsection (6) of this section,— (a) The company commits an offence and is liable on summary conviction to a fine not exceeding $5,000: (b) Every director of the company commits an offence, and is liable on summary conviction to a fine not exceeding $5,000, unless the director shows that— (i) The director did not know of and could not reasonably have been expected to know of the contravention or failure to comply; or (ii) The director took all reasonable steps to ensure that the applicable requirements would be complied with. Part 7A (comprising sections 121A to 121P) was inserted, as from 1 July 1994, by section 2 Land Transfer Amendment Act 1993 (1993 No 124).