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Priority Dispute: Mortgagee Lodging a Proof of Debt
Priority Dispute – whether a mortgagee surrenders its rights when lodging a proof of debt in respect of its entire claim.
In Combis & Ors v The Trust Company Ltd [2011] QSC 388 the court was asked by the liquidator of a borrower to find that a mortgagee who had discharged its mortgage to allow the security property to be sold by a receiver became disentitled to any share of the surplus sale proceeds because the mortgagee lodged a proof of debt for all monies owed to it.
