This article was written by Nancy Wang Principal Solicitor at W & G Lawyers.
Recent Queensland Supreme Court decision is a useful reminder of where a financier stands when a development collapses and the lender has to pick up the tools itself. The short answer: a mortgagee who takes possession and completes a half-built project can usually recover what it spends ahead of the other lenders holding security over the property — but only if its security and any priority arrangements are drafted to allow it.
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