Perpetual v Costa [2007] NSWSC 1093

In this case the lender relied upon a cheque direction signed by the originator, Streetwise Home and Equity Loans (run by fraudster Kovelan Bangaru), to pay the surplus proceeds of the loan to a third party Berkshire Enterprises (run by Bangaru). The borrowers admitted signing the mortgage and the deed of loan but denied they authorised the money to be advanced to Berkshire. The loan was an all monies mortgage and so the lender lost everything.

Bransgroves Lawyers continually warns lenders not to use all monies mortgages. Despite the raft of recent cases:

  1. Small v Tomasetti [2001] NSWSC 1112
  2. Perpetual Trustees Victoria Ltd v Tsai [2004] NSWSC 745
  3. Permanent Custodians v Yazgi [2007] NSWSC 279
  4. Printy v Provident Capital Limited [2007] NSWSC 287
  5. Chandra v Perpetual Trustees Victoria Ltd [2007] NSWSC 694
  6. Perpetual Limited v Costa [2007] NSWSC 1093
  7. Queensland Premier Mines Pty Ltd v French [2007] HCA 53
  8. Perpetual Trustees Victoria Limited v Ford [2008] NSWSC 29
  9. Perpetual Trustees Victoria Ltd v Van den Heuvel [2008] NSWSC 350
  10. Vella v Permanent Mortgages P/L [2008] NSWSC 505
  11. Provident Capital Ltd v Printy [2008] NSWCA 131
  12. Perpetual Trustees Australia v Richards [2008] NSWSC 658

lenders continue to ignore the peril of using all monies mortgages. Matthew Bransgroves has been warning lenders since 17 November 2003 (in a College of Law paper on Indefeasibility of Mortgages) not to use all monies mortgages.

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