Australian Capital Territory Repealed Acts

This legislation has been repealed.

CREDIT ACT 1985 (REPEALED) - SECT 26

    (1)     Subject to section 27, if a contract of sale is rescinded or discharged (whether under this Act or any other law in force in the ACT) and there is a tied continuing credit contract made with the buyer by a linked credit provider of the supplier under the contract of sale, any mortgage relating to the tied continuing credit contract is discharged to the extent that it secures payment of the amount entered in relation to the contract of sale in an account of the debtor kept by the credit provider under the tied continuing credit contract and the amount (if any) of the credit charge so entered and attributable to the contract of sale and—

        (a)     the credit provider shall enter in that account an amount by way of refund to the debtor equal to the firstmentioned amount; and

        (b)     the supplier is liable to the credit provider for an amount equal to the firstmentioned amount;

and, if the contract of sale is a contract of sale of goods and services—

        (c)     if the goods are in the possession of the buyer—

              (i)     if, before the rescission or discharge of the contract of sale, the goods were not subject to a mortgage relating to the tied continuing credit contract—the buyer shall deliver the goods to the supplier; or

              (ii)     if, before the rescission or discharge of the contract of sale, the goods were subject to a mortgage relating to the tied continuing credit contract—the buyer shall deliver the goods to the credit provider; and

        (d)     if the goods are in the possession of the credit provider and no amounts are owed to the credit provider under paragraph (b)—the credit provider shall deliver the goods to the supplier.

    (2)     If, under subsection (1) (c), goods are delivered to the credit provider, the credit provider is entitled to possession of the goods as against the supplier until the credit provider has been paid the amount for which the supplier is liable to the credit provider under subsection (1) (b).

    (3)     Subsection (1) does not apply if the credit is provided by a linked credit provider of a supplier to a buyer as a result of an approach by the buyer to the credit provider that was not induced by the supplier.