CommBar Matters

The Commercial Bar Association of Victoria Inc. A0120851O

Tagged: forgery

Banking and Finance

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Forged mortgage and loan documents give rise to a mortgage which secures nothing

Justice Hargrave has declined to follow the earlier decision of Justice Pagone in Solak v Bank of Western Australia Ltd [2009] VSC 82. The cases involved the construction of a registered “all monies” mortgage which included a forged mortgage document and a forged loan agreement. Justice Hargrave followed New South Wales Court of Appeal decisions in holding that the mortgage effectively secures nothing because the underlying loan documents had been forged.

Corporations and Securities Law

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Forgery of guarantee

Roslyn Kaye – The New South Wales Court of Appeal allowed this appeal brought by the ANZ bank. The trial judge had found that the bank was not entitled to rely upon an assumption that a forged guarantee document had been duly executed. The Court of Appeal held that the bank was entitled to rely upon the assumptions in sections 129(4) and (5) of the Corporations Act 2001 that the guarantee had been duly executed, and accordingly the guarantee was enforceable against the respondent company.