Commonwealth Consolidated Regulations

AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION REGULATIONS 2001 - REG 2B

  (1)   For paragraph   12BAA(7)(k) of the Act, each of the following is a credit facility :

  (a)   the provision of credit:

  (i)   for any period; and

  (ii)   with or without prior agreement between the credit provider and the debtor; and

  (iii)   whether or not both credit and debit facilities are available;

  (b)   a facility:

  (i)   known as a bill facility; and

  (ii)   under which a credit provider provides credit by accepting, drawing, discounting or indorsing a bill of exchange or promissory note;

  (c)   the provision of credit by a pawnbroker in the ordinary course of a pawnbroker's business (being a business which is being lawfully conducted by the pawnbroker);

  (d)   the provision of credit by the trustee of the estate of a deceased person by way of an advance to a beneficiary or prospective beneficiary of the estate;

  (e)   the provision of credit by an employer, or a related body corporate of an employer, to an employee or former employee (whether or not it is provided to the employee or former employee with another person);

  (f)   the provision of a mortgage that secures obligations under a credit contract (other than a lien or charge arising by operation of any law or by custom);

  (g)   a guarantee related to a mortgage mentioned in paragraph   (f);

  (h)   a guarantee of obligations under a credit contract;

  (i)   a facility for making non - cash payments if payments made using the facility will all be debited to a facility mentioned in paragraphs   (a) to (h).

  (2)   The provision of consumer credit insurance that includes a contract of general insurance for the Insurance Contracts Act 1984 is not a credit facility.

  (3)   In this regulation:

"credit" means a contract, arrangement or understanding:

  (a)   under which:

  (i)   payment of a debt owed by one person (a debtor ) to another person (a credit provider ) is deferred; or

  (ii)   one person (a debtor ) incurs a deferred debt to another person (a credit provider ); and

  (b)   including any of the following:

  (i)   any form of financial accommodation;

  (ii)   a hire purchase agreement;

  (iii)   credit provided for the purchase of goods or services;

  (iv)   a contract, arrangement or understanding for the hire, lease or rental of goods or services, other than a contract, arrangement or understanding under which:

  (A)   full payment is made before or when the goods or services are provided; and

  (B)   for the hire, lease or rental of goods--an amount at least equal to the value of the goods is paid as a deposit in relation to the return of the goods;

  (v)   an article known as a credit card or charge card;

  (vi)   an article, other than a credit card or a charge card, intended to be used to obtain cash, goods or services;

  (vii)   an article, other than a credit card or a charge card, commonly issued to customers or prospective customers by persons who carry on business for the purpose of obtaining goods or services from those persons by way of a loan;

  (viii)   a liability in respect of redeemable preference shares;

  (ix)   a financial benefit arising from or as a result of a loan;

  (x)   assistance in obtaining a financial benefit arising from or as a result of a loan;

  (xi)   issuing, indorsing or otherwise dealing in a promissory note;

  (xii)   drawing, accepting, indorsing or otherwise dealing in a negotiable instrument (including a bill of exchange);

  (xiii)   granting or taking a lease over real or personal property;

  (xiv)   a letter of credit.