Credit Union Australia v Lyons [2009] NSWSC 1188

In this case the mortgages were discharged, but due to an administrative oversight the line of credit account was not closed. The borrower’s were able to draw on the account back to its original limit. It was only when the limit was exceeded, and the lender made attempts to obtain repayment that they realised that the account was unsecured. The borrowers used part of the money to pay down mortgages on other properties and, so, in addition to claiming judgment for a monetary amount, the lender sought an order allowing it to trace the monies and obtain an order charging those properties. There was no appearance filed for the defendants and the Court made the orders sought.

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