QUESTION THREE Hyjin is the registered proprietor of 5 Southbound Road, Melton, where she lives with her husband Rodriguez and their two cats, Poppy and Mr Puggles. The couple purchased the property for $942,000 in March 2020 with the assistance of a $700,000 loan from Best Bank. As security, Best Bank has been granted a security interest in the property, by way of a registered mortgage. As at 1 June 2022, the amount owing under the mortgage is $650,725. Unfortunately, Rodriguez lost his job 6 months ago, and the couple have fallen behind on their mortgage repayments. Rodriguez has tried his best to reassure Hyjin that everything is ok, although, in reality, they are further in debt than he has let on. Hygin and Rodriguez failed to make a scheduled fortnightly repayment on 6 May 2022, and when this was not remedied, they received a default notice from Best Bank, demanding payment and threatening to exercise its statutory power of sale. Despite their best efforts, Hyjin and Rodriguez were unable to make up the payments. Norman, a Recovery Office at Best Bank has been made responsible for the sale. He proposes to sell the Melton Property by public auction, scheduled for Saturday 1 June 2022 at the Melton Office of Best Bank. He has obtained two valuations for the property, one from licenced valuer Peter Marcombe, who has valued the property at $890,000 - $910,000. The second he obtained from Best Real Estate, a subsidiary of Best Bank, for the amount of $950,000 - $980,000. Recently Best Bank released a policy to advertise any properties for sale by mortgagee sale in local newspapers, due to an exponential increase in the fees charged by the major property hosting sites: Domain and Real Estate.Com. So far, advertisements in the Melton Local have generated only moderate interest. Norman calls his friend, Rasheed, who is a property developer in the Melton area for advice. Rasheed says at around $900,000 he would be very interested in purchasing the property. As the legal officer for Best Bank, Norman approaches you for approval of the above plan.

REQUIRED Advise Norman whether the above would comply with the TLA. Explain your reasons. In your response, you should identify which valuation (if any) Best Bank should rely on if they proceed with the sale. worth 10 MARKS!!!