New South Wales Consolidated Acts

CREDIT ACT 1984 - SECT 48

48 Definitions

(1) For the purposes of this section:

(a) a reference to an agreement includes a reference to an arrangement, understanding or course of dealing, and

(b) a person shall be deemed to agree with another person with respect to a matter if the first-mentioned person has an agreement, arrangement or understanding with the other person, or is engaged in a course of dealing with the other person, with respect to the matter.

(2) Where:

(a) a person (in this section referred to as "the creditor"), in the course of a business carried on by him or her, agrees with another person (not being a body corporate) to provide credit to that other person in respect of:

(i) payment for goods or services or cash supplied by the creditor to that other person from time to time, or

(ii) payment by the creditor to a third person in respect of goods or services or cash supplied by that third person to that other person from time to time, and

(b) the amounts owing to the creditor from time to time under the agreement are or are to be calculated on the basis that all amounts owing, and all payments made, by that other person under or in respect of the agreement are entered in one or more accounts kept for the purpose of the agreement,

the agreement is, for the purposes of this Act, a continuing credit contract.

(3) Where the creditor agrees to make payments to a third person in respect of goods or services or cash supplied by that third person to the other person, as referred to in subsection (2) (a) (ii), then, for the purposes of this Act, the creditor shall, in respect of any goods or services or cash so supplied, be deemed to have provided credit to that other person to the extent of any payments made or to be made by the creditor to that third person.

(4) Where in respect of the provision of credit:

(a) the only credit charge is a pre-determined credit charge, or

(b) the credit is, or is to be, provided by specified instalments,

the provision of the credit is not, and does not form part of, the provision of credit under a continuing credit contract.

(5) This section does not apply to an agreement of a class or description of agreements prescribed as being continuing credit contracts that are not continuing credit contracts within the meaning of this section.