Ipso Facto Stays and Security Enforcement: Key Exclusions Secured Creditors Need to Know

Blake Shaw of Ironbridge Legal explains that while Australia’s ipso facto stay restricts enforcement triggered by insolvency, extensive statutory carve-outs preserve key secured creditor rights, including crystallisation, set-off and netting, controller appointments, step-in rights and default interest, allowing lenders to maintain control over collateral and reduce exposure despite formal insolvency processes.

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