12. Retention of Ownership
12.1 Until the Customer has paid the quoted or revised price and any moneys outstanding pursuant to this Agreement or any other contract between Shaw and the Customer in full, all Goods supplied pursuant to this Agreement or any other contract between Shaw and the Customer will remain the property of Shaw.
12.2 Notwithstanding clause 12.1 the risk of loss or damage to the Goods will pass to the Customer from the time of delivery to the Customer or its agent or the nominated address and the Customer or its agent will keep the Goods properly insured for their insurable value until all moneys whatsoever owing by the Customer to Shaw have been paid in full. All policies of insurance will be effected in the joint names of the Customer and Shaw for their respective rights in respect of loss or damage to the Goods and policies of insurance will apply equally to Shaw and to the Customer as if each were separately insured under any such policy of insurance.
12.3 Until all moneys owing to Shaw by the Customer have been paid in full or for all Goods supplied to the Customer under this Agreement or any other contract and until the Customer has satisfied any other debts owing to Shaw, the Customer will hold any Goods delivered to it as fiduciary agent and bailee for Shaw pending such payment and will ensure that all Goods supplied to the Customer by Shaw are stored separately from all other goods which may be in the Customer’s possession, and that all Goods supplied to the Customer by Shaw are stored and will comply with all reasonable directions given by Shaw and/or its representatives to ensure compliance with the requirements of this clause.
12.4 The Customer agrees with Shaw that they shall treat the security interest in the Goods as a continuing and subsisting security with priority over a registered general security and any unsecured creditors despite the fact of the Goods having become fixtures at any time before payment has been made for them.
12.5 Until all monies due for all Goods supplied to the Customer by Shaw are paid, Shaw authorises the Customer to sell Goods to a third party as a fiduciary agent of Shaw. The Customer will, however, not represent to a third party that is in any way acting for Shaw and Shaw will not be bound by any contract with third parties made by the Customer.
12.6 If the Customer sells the Goods to a third party and receives payment before the Payment Date, the Customer will account to Shaw for the quoted or revised price of the Goods immediately after the Goods are on-sold and the proceeds of sale received, even though the quoted or revised price may not be due and payable. To facilitate such payment, the proceeds will be paid into a separate and identifiable bank account and the Customer will account to Shaw from this account for moneys due for the supply of the Goods.
12.7 If the Customer sells any of the Goods before title in and to the Goods has passed in accordance with clause 12.1, the Customer will hold such part of the book debts (being monies due to the Customer by third parties on account of such sales)(‘Book Debts’) as relates to the Price of the Goods sold on trust for Shaw and will account for such part of the Book Debts separately in its accounts in a manner which clearly identifies such part of the Book Debts as trust assets held on trust for and on behalf of Shaw.
12.8 The Customer agrees that it will not enter into a forward sale contract with any third party in respect of the Goods.
12.9 The Customer agrees that it will not assign or factor the Book Debts.
12.10 If the Customer fails to pay for the Goods by the Payment Date or if the Customer commits an act of bankruptcy or has a receiver or a receiver and manager appointed over any of its assets or goes into liquidation (including provisional liquidation) or any similar event occurs, then, without prejudice to any other rights of Shaw, Shaw will be entitled to enter upon any premises where the Goods for which full payment has not been made are stored and to retake possession of such Goods. Shaw will then be entitled to resell such Goods to a third party, and the Customer will indemnify Shaw from and against, and will pay on demand to Shaw all loss, damage, costs or expenses incurred by Shaw in respect of such possession and resale of the Goods or any of them.
12.11 To the extent that the terms of this clause create a charge registrable by Shaw over the Goods, the Customer appoints Shaw as its agent to register that charge on behalf of Shaw at any time and to do all acts necessary to procure an extension of the relevant period for such registration pursuant to Section 263(1) of the Corporations Act 2001 (‘relevant period’), including, without limitation, making an application to the court pursuant to Section 266(4) of the Corporations Act 2001 for an extension of the relevant period.