Australian Capital Territory Current Acts

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RESIDENTIAL TENANCIES ACT 1997 - SECT 16

Alternative to a bond—guarantee or indemnity

    (1)     Subject to subsection (2), in addition to or in place of a bond, a lessor may accept either a guarantee or an indemnity for the performance of a tenant's obligations under a residential tenancy agreement.

    (2)     A guarantee or an indemnity under subsection (1) is only enforceable against the guarantor or indemnifier—

        (a)     if it is in addition to a bond—to the extent of the difference between the maximum amount that would have been payable by the tenant as a bond and the amount that is payable by the tenant as a bond; or

        (b)     if it is in place of a bond—to the extent of the maximum amount that would have been payable by the tenant as a bond.

    (3)     A term of a commercial guarantee, in relation to a residential tenancy agreement, that is inconsistent with, or is in addition to, a registered standard guarantee contract is void.

    (4)     If a regulation requires a commercial guarantee to include a term in the contract, the guarantee is taken to include the term.

    (5)     If a regulation requires a matter to be excluded from a commercial guarantee, the guarantee is void to the extent that it includes the matter.

    (6)     In this section:

"registered standard guarantee contract" means a standard guarantee contract registered under section 104.



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