Australian Capital Territory Repealed Acts

This legislation has been repealed.

CREDIT ACT 1985 (REPEALED) - SECT 49

    (1)     Subject to subsection (2), a reference in this part (other than in section 48) to a continuing credit contract is a reference to a continuing credit contract under which—

        (a)     if credit is or may be provided to the debtor by way of the supply of cash by the credit provider or by any other person (whether to the debtor or to another person)—a charge is or may be made for the provision of credit in relation to which the annual percentage rate exceeds 14%; or

        (b)     if credit is or may be provided to the debtor by the credit provider in relation to payment for goods and services supplied by the credit provider or by any other person (whether to the debtor or to another person)—

              (i)     a charge, other than an account charge, is or may be made for the provision of credit; or

              (ii)     an amount, other than an account charge, owing at any time by the debtor is not required to be paid within 4 months after it is first owed; or

              (iii)     an amount, other than an account charge, owing at any time by the debtor is or will become payable by 5 or more instalments or by a deposit and 4 or more instalments.

    (2)     This part does not apply to a continuing credit contract under which—

        (a)     if credit is or may be provided to the debtor by way of the supply of cash by the credit provider or any other person (whether to the debtor or to another person)—a charge is or may be made for the provision of credit in relation to which, if the payment of a debt or other pecuniary obligation or the performance of any other obligation under the continuing credit contract is secured by a mortgage of land—there is an acceptable rate of interest that does not exceed 14% and a higher annual percentage rate that exceeds 14% but does not exceed the acceptable rate by more than 2%; or

        (b)     an amount exceeding $20 000 is agreed as the maximum amount that at any time may be owed by the debtor under the contract; or

        (c)     a bank or a pastoral finance company provides credit to a person by overdraft on current account.

    (3)     For subsection (2) (b), a continuing credit contract shall be deemed not to be a contract under which an amount exceeding $20 000 is agreed as the maximum amount that at any time may be owed by the debtor under the contract if—

        (a)     under the contract, the debtor may not, otherwise than because of his or her default, owe more than $20 000 excluding any credit charge; or

        (b)     when the contract is made, it is probable, having regard to the terms of the contract and all other relevant considerations, that the amount owed by the debtor under the contract will not at any time exceed $20 000 excluding any credit charge.

    (4)     If more than 1 account is maintained under a continuing credit contract, this division (other than this section and sections 58, 59, 60 and 66) has effect as if separate continuing credit contracts in the same terms as the contract under which the accounts are maintained had been entered into in relation to each account.