Rainima v G E Mortgage Solutions [2011] NSWCA 355

The lender sought possession and judgement for the debt. The borrowers claimed that they had given the lender a so called “promissory note” which discharged the mortgage debt and the mortgage. The document was typed by the borrower, signed by the borrower and stamped with a postage stamp. The judge viewed this as flimsy:

It is not legal tender for the debt and there is no evidence that it was ever accepted by anyone with authority as unconditional payment of the debt. 

The court was extremely sceptical of the references in the note to securities purportedly held at the US Treasury and the Australian Treasury underwriting its value. The lender was granted possession and judgment for the debt and an injunction staying execution of the judgment was refused.

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