Australian Capital Territory Numbered Acts

RESIDENTIAL TENANCIES AMENDMENT ACT 2017 (NO. 32 OF 2017) - SCHEDULE 1

Schedule 1     Commercial guarantees—stage 1 amendments

(see s 3)

[1.1]     Section 15 (4)

substitute

    (4)     In subsection (1), a reference to a "bond"—

        (a)     includes a reference to a guarantee or an indemnity under section 16; but

        (b)     does not include a commercial guarantee.

[1.2]     New section 15 (7)

insert

    (7)     In this section:

"commercial guarantee", in relation to a residential tenancy agreement, means a contract or arrangement between the lessor, the tenant and a third party—

        (a)     that is in addition to or in place of a bond; and

        (b)     under which the third party, for a fee, benefit or reward, gives a guarantee or indemnity to the lessor for the performance of the tenant's obligations under the residential tenancy agreement.

[1.3]     Section 16 (2)

substitute

    (2)     A guarantee or an indemnity under subsection (1) is only enforceable—

        (a)     against the guarantor or indemnifier—

              (i)     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

              (ii)     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; and

        (b)     if the guarantee or indemnity is not a commercial guarantee.

    (3)     In this section:

"commercial guarantee"—see section 15 (7).