The principles of tacking are an important yet often misunderstood concept in the securitisation of debt. For lenders, confusion generally surrounds the priorities for real property and personal property security. However, with a proper understanding of the principles, lenders can mitigate some of the priority issues that arise with registered and unregistered mortgages.

The case of Bellas v Powers [2023] NSW SC involved a dispute over the enforceability of a clause that imposed a higher interest rate on a loan facility in the event of default. The court held that the clause was a penalty as it was extravagant and unconscionable in comparison with the greatest loss that could be proved to have followed from the breach. The term was therefore deemed void and unenforceable.