Mortgages Gary is the registered proprietor of two properties, Blue Shores and White Leaf. Gary approaches Hunter for a loan. Hunter agrees to provide Gary the sum of $500,000 but requires security for the advance. Gary offers up his two properties, Blue Shores and White Leaf as security for the loan. A mortgage is then granted in favour of Hunter. Hunter registers his interest. Some time later Gary defaults in the mortgage repayments. Hunter issues Gary with a valid s 57 (2) (b) notice under theReal Property Act.Gary receives the notice but ignores it. Three months later Hunter takes possession of both properties with a view to exercise his power of sale. Blue Shores is a beautiful property near Byron bay in Northern NSW and has a value of $500,000. White Leaf is small cottage in the Southern Highlands and has a market value of $375,000. Hunter's brother, Rodney, is the director of a rapidly expanding wellness company called Ocean Tranquility. Hunter has shareholdings in his brother's company. Hunter is also aware that Thermal Thoughts Pty Limited, another wellness company is keen to secure Blue Shores as a spa and yoga retreat. Hunter arranges for a public auction to be conducted in Western Sydney on Christmas Eve. The auction is advertised in a weekly newspaper circulating in and around the Wollongong area. A representative of Ocean Tranquility is the only person present at the auction and Blue Shores is sold to Ocean Tranquility for $350,000. The contract for the sale of White Leaf was entered into with a purchaser introduced to Hunter by a real estate agent carrying on its business in the area where White Leaf is situated. The purchaser has no connection to Hunter. The price agreed was $300,000, although, if White Leaf had been kept on the market for several more weeks, another purchaser would have been prepared to pay market value. Advise Gary as to the following: 1. Has there been an improper exercise of the mortgagee's power of sale over Blue Shores and White Leaf? Please answer by step: 1) Key legal Issues and Facts 2)Principles and Authorities 3)Application 4)Conclusions, Remedies and Advice

reference Conveyancing Act1919 (NSW); o s 111A. Real Property Act1900 (NSW); o ss 56, 56C, 57 Cases Indefeasibility of Fraudulent Mortgage Provident Capital Ltd v Printy[2008] NSWCA 131. *Perpetual Trustees Victoria Ltd v English[2009] NSWSC 478. Van den Heuvel v Perpetual Trustees Victoria Ltd[2010] NSWCA 171. Powers of Mortgagees *Cuckmere Brick Co Ltd v Mutual Finance Ltd[1971] Ch 949. Pendlebury v The Colonial Mutual Life Assurance Ltd(1912) 13 CLR 676. Forsyth v Blundell(1973) 129 CLR 477. *ANZ Banking Group Ltd v Bangadilly Pastoral Co Pty Ltd(1978) 139 CLR 195. Southwell v Roberts(1940) 63 CLR 581. Priorities of Mortgagees and Tacking Hopkinson v Rolt(1861) 11 ER 829. Matzner v Clyde Securities Ltd[1975] 2 NSWLR 293. *Central Mortgage Registry of Australia Ltd v Donemore Pty Ltd [1984] 2 NSWLR 128.

Many thanks