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7. Title

7.1 Cedar and the Customer agree that ownership of the Goods shall not pass until:

(a) the Customer has paid Cedar all amounts owing to Cedar; and

(b) the Customer has met all of its other obligations to Cedar.

7.2 Receipt by Cedar of any form of payment other than cash shall not be deemed to be payment until that form of payment has been honoured, cleared or recognised.

7.3 It is further agreed that:

(a) until ownership of the Goods passes to the Customer in accordance with clause 7.1 that the Customer is only a bailee of the Goods and must return the Goods to Cedar on request.

(b) the Customer holds the benefit of the Customer’s insurance of the Goods on trust for Cedar and must pay to Cedar the proceeds of any insurance in the event of the Goods being lost, damaged or destroyed.

(c) the Customer must not sell, dispose, or otherwise part with possession of the Goods other than in the ordinary course of business and for market value. If the Customer sells, disposes or parts with possession of the Goods then the Customer must hold the proceeds of any such act on trust for Cedar and must pay or deliver the proceeds to Cedar on demand.

(d) the Customer should not convert or process the Goods or intermix them with other goods but if the Customer does so then the Customer holds the resulting product on trust for the benefit of Cedar and must sell, dispose of or return the resulting product to Cedar as it so directs.

(e) the Customer irrevocably authorises Cedar to enter any premises where Cedar believes the Goods are kept and recover possession of the Goods.

(f) Cedar may recover possession of any Goods in transit whether or not delivery has occurred.

(g) the Customer shall not charge or grant an encumbrance over the Goods nor grant nor otherwise give away any interest in the Goods while they remain the property of Cedar.

(h) Cedar may commence proceedings to recover the Price of the Goods sold notwithstanding that ownership of the Goods has not passed to the Customer.


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