In the case of Citigroup Pty Ltd (ACN 004 325 080) v Wernhard  NSWSC 132 the Supreme Court ruled that borrowers are unable to opportunistically take advantage of errors made by lenders in attempt to circumvent loan obligations. The case involved Citigroup (‘the lenders’) mistakenly releasing all securities over the borrowers’ property, with the borrowers knowingly taking advantage of the mistake by selling the property without advising the lenders. Accordingly, the Court ordered that the borrowers had acted unconscionably and in a manner inconsistent with their loan obligations. Consequently, the borrowers were ordered to re-mortgage their second property as security for the loan amount, and were ordered to pay Citigroup’s legal costs. Borrowers should be aware that this decision could potentially be used by lenders in circumstances where there is a failure to disclose material facts of a current loan.