David has been appointed as a receiver by Bad Bank Ltd in connection with a secured loan it provided to Animals Pty Ltd. David has taken possession of the collateral and is in the process of selling it through an auction process. David needs to ensure that he takes all reasonable care to sell the property for not less than its market value, if the property has a market value, or otherwise at the best price that is reasonably obtainable, having regard to the circumstances that exist when the property is being sold.

Question

Quizplus · Accepted Answer

As a receiver, David has a legal obligation to act in good faith and take reasonable care to obtain the best possible price for the collateral, either at market value or the best price obtainable under the circumstances.

David Has Been Appointed as a Receiver by Bad Bank