Adrian is a chef from New Zealand and has recently moved to Melbourne. He is keen to open up a Café in St Kilda. He finds a great premise to lease on the Beach road. He signs a lease with the property owner, Normann. Adrian can’t afford to buy the kitchen equipment outright so he gets a loan from JKN Bank for $100,000.

A term of the loan agreement was to register the equipment on the Personal Property Security Act. Using the money borrowed, Adrian opens the café but it doesn’t do well. After a few weeks, he is unable to keep up the payments to Normann, JKN Bank and other suppliers.

After another month of not receiving his rent, Normann changes the locks on the premises and says that until his rent is paid in full, he has complete ownership and interest of everything inside.

Advise JKN Bank on what their position is in regards to their interest in the kitchen equipment versus Normann’s.