Australian Capital Territory Consolidated Acts Australian Capital Territory Consolidated Acts(1) A person—
(a) being a credit provider, shall not assign the whole or any part of his or her rights as a credit provider under a regulated contract to a person other than a registered credit provider or an exempt credit provider; and
(b) being a mortgagee under a mortgage relating to a regulated contract shall not, subject to subsection (3), assign the whole or any part of his or her rights as a mortgagee under the mortgage to a person other than a registered credit provider or an exempt credit provider to whom he or she has assigned his or her rights under the credit contract;
unless the assignment—
(c) is an assignment made bona fide by way of security in relation to a liability incurred by the assignor; or
(d) is made with the consent of the ACAT.
(2) A person, being a credit provider or mortgagee referred to in subsection (1), that contravenes that subsection commits an offence:
Maximum penalty:
(a) for an individual—$1 000; and
(b) for a corporation—$5 000.
(3) For subsection (1) (d), if, in relation to a proposed assignment—
(a) the person who would be the assignee under the assignment is disqualified from registration as a credit provider or as a finance broker under the Administration Act; or
(b) the proposed assignment would, or would be likely to, prejudice the rights or interests of any person (other than the assignor) under the relevant regulated contract or mortgage or under a contract of guarantee relating to the regulated contract;
the ACAT shall refuse consent to the assignment.
(4) If a mortgage secures payment of a debt or other pecuniary obligation or the performance of any other obligation under a regulated contract and secures other money or the performance of any other obligation, subsection (1) does not apply to or in relation to an assignment of rights under the mortgage that do not relate to a regulated contract.
(5) Subject to this section, if a credit provider or a mortgagee assigns his or her rights as a credit provider under a regulated contract or as a mortgagee under a regulated mortgage—
(a) the debtor or mortgagor and, if there is a guarantee in relation to the contract or mortgage, the guarantor, have under the contract, mortgage or guarantee the same obligations to the assignee as they would have had to the credit provider or mortgagee if the assignment had not been made; and
(b) subject to subsection (6), the debtor or mortgagor and any such guarantor have and may exercise the same rights in relation to the contract, mortgage or guarantee against the assignee as they have and may exercise against the credit provider or mortgagee.
(6) An assignee under an assignment to which subsection (1) applies of the rights of a credit provider under a regulated contract or of a mortgagee under a mortgage relating to a regulated contract is not liable to the debtor or mortgagor under the contract or mortgage in relation to an amount exceeding the amount due to the assignee under the regulated contract at the date of the assignment.
(7) The rights of a debtor, mortgagor or guarantor referred to in subsection (5) (b) in relation to a regulated contract or a regulated mortgage may not be exercised otherwise than by way of a defence or set-off in relation to a claim by the assignee under the regulated contract.
(8) Subject to section 85—
(a) if a credit provider assigns the whole or any part of his or her rights under a credit sale contract or a loan contract otherwise than in accordance with subsection (1), the debtor is not liable to pay the amount of the credit charge under the contract; and
(b) if a credit provider assigns the whole or any part of his or her rights under a regulated continuing credit contract otherwise than in accordance with subsection (1), the debtor is not liable to pay the amount of the credit charge for the billing cycle during which the assignment occurred; and
(c) if a credit provider assigns the whole or any part of his or her rights as mortgagee under a regulated mortgage otherwise than in accordance with subsection (1)—
(i) if the mortgage relates to a credit sale contract or a loan contract—the debtor is not liable to pay the amount of the credit charge under the contract; and
(ii) if the mortgage relates to a regulated continuing credit contract—the debtor is not liable to pay the amount of the credit charge for the billing cycle during which the assignment is made.
(9) This section does not apply to or in relation to an assignment that occurs by operation of law.