Australian Capital Territory Consolidated Acts Australian Capital Territory Consolidated Acts(1) The credit provider and the debtor under a credit sale contract or a loan contract may agree to vary the terms of the contract in relation to, or to payment of, the amount owing under the contract if—
(a) the outstanding balance of the amount financed at the date of the variation is not increased by the variation or is increased by the variation only because of the addition of an amount referred to in subsection (3); and
(b) the annual percentage rate applicable to the contract as varied does not exceed the lesser of—
(i) the annual percentage rate applicable to the contract immediately before the variation; and
(ii) the annual percentage rate prescribed for this subparagraph; and
(c) a deferral charge is not made in relation to the variation; and
(d) the agreement is in writing signed by the credit provider and the debtor and specifies (if applicable)—
(i) the varied terms of repayment; and
(ii) the amount by which the amount financed is increased; and
(iii) the amount by which the credit charge is increased because of the variation; and
(iv) the amount of default and deferral charges outstanding at the date of the variation; and
(v) the amount of stamp duty and legal fees payable to a duly qualified lawyer (other than the credit provider or an employee of the credit provider) for preparation of the agreement; and
(vi) the additional amount payable under the contract because of the variation; and
(vii) any other matters that may be prescribed.
(2) The regulations may prescribe how matters required by subsection (1) (d) to be specified in an agreement are to be so specified.
(3) The following are the amounts by which the outstanding balance of the amount financed under a credit sale contract or a loan contract may be increased by a variation under subsection (1):
(a) if, under the credit sale contract or loan contract, the premium under a contract of insurance or compulsory insurance entered into in relation to the credit sale contract or loan contract or to a regulated mortgage relating to the contract was included in the amount financed under the credit sale contract or loan contract—a premium payable under that contract of insurance or compulsory insurance in relation to a subsequent period not exceeding 12 months;
(b) if, under the credit sale contract or loan contract, registration fees relating to goods and in relation to a particular period were included in the amount financed under the credit sale contract or loan contract—registration fees relating to those goods in relation to a subsequent period;
(c) any other amounts that may be prescribed.
(4) A credit provider that—
(a) enters into an agreement referred to in subsection (1); and
(b) fails to give to the debtor a copy of the agreement within 14 days after the agreement is entered into;
commits an offence.
Maximum penalty:
(a) for an individual—$1 000; and
(b) for a corporation—$5 000.
(5) Notwithstanding any other provision of this Act, an agreement to vary a contract in accordance with this section is not a loan contract.
(6) If a variation to which this section applies is made to the terms of a credit sale contract or a loan contract, a guarantor under a contract of guarantee in relation to the obligations of the debtor under the contract is not liable in relation to the contract for an amount exceeding the amount for which, apart from the variation, he or she would have been liable unless the credit provider, not later than 14 days after the variation is made, gives to the guarantor written notice of the variation.
(7) This section does not apply to or in relation to a variation—
(a) if section 37, 69 or 71 applies to or in relation to the variation; or
(b) only because that, as a result of a variation, the amount due to a credit provider is satisfied or reduced.