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 (within the meaning of section 763D of the Corporations Act) 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.