Sailor Yachts Pty Ltd (SY) operates a boat building business in New South Wales. The major supplier of finance to SY was ABC Bank who entered into a loan arrangement with SY in which it took a security interest over the whole of SYs business in return for a 1 million dollar loan. The loan document provided that ABC Bank had the right to appoint a receiver where there was a default by SY in the payment of their loan.

There has been a dramatic downturn in the boatbuilding business and SY has missed two consecutive loan repayments owed to ABC Bank. On 1 November 2020, Samantha was appointed as receiver of SY.

Samantha decides to sell all of SYs yachts. The directors of SY told Samantha that one of the yachts is particularly rare and worth much more than the others. Samantha takes no notice and sells all the boats to Yankeys Yachts Pty Ltd. Samantha did not advertise the boats for sale or negotiate on price.

Samantha decides the boat hire part of the business is profitable and continues this part of the business. However, the 25 employees involved in boat building are dismissed.

Samantha seeks your advice as to her rights and duties as a receiver?