(1) A loan to a company is unfair if, and only if:
- (a)
- the interest on the
loan was extortionate when the loan was made, or has since become extortionate
because of a variation; or
- (b)
- the charges in relation to the loan were extortionate when the loan was
made, or have since become extortionate because of a variation;
even if the interest is, or the charges are, no longer extortionate.
(2) In determining:
- (a)
- whether interest on a loan was or became
extortionate at a particular time as mentioned in paragraph (1)(a); or
- (b)
- whether charges in relation to a loan were or became extortionate at a
particular time as mentioned in paragraph (1)(b);
regard is to be had to the following matters as at that time:
- (c)
- the risk to which the lender was exposed; and
- (d)
- the value of any security in respect of the loan; and
- (e)
- the term of the loan; and
- (f)
- the schedule for payments of interest and charges and for repayments of
principal; and
- (g)
- the amount of the loan; and
- (h)
- any other relevant matter.
Commonwealth Numbered Acts