New South Wales Consolidated Acts

INTEREST REDUCTION ACT 1931 - SECT 6

6 Minimum rate of interest

(1) The provisions of section five of this Act shall not have the effect of reducing the interest payable under any mortgage to a rate less than five pounds per centum per annum, or in the case of mortgages to the Commissioners of the Government Savings Bank of New South Wales to secure moneys advanced from funds obtained from the Commonwealth Savings Bank in pursuance of the Commonwealth Housing Act 1927-1928 , to a rate less than five and three quarters per centum per annum, nor have the effect of reducing the rate of interest payable under any debenture to a rate less than four per centum per annum.

(2) Where the rate of interest under any mortgage has been reduced by or under the Moratorium Act 1930 , the reduction in pursuance of the provisions of section five of this Act shall be made from the amount which would have been payable as interest if the Moratorium Act 1930 , had not been enacted, and where the reduction made under that Act exceeds the reduction in pursuance of section five of this Act, that section shall not apply to the mortgage during the period for which the reduction under that Act operates.

(3) In this section "mortgage" means any deed, memorandum of mortgage, instrument or agreement whereby security for payment of moneys or for the performance of any contract is granted over land or chattels or any interest therein respectively, and includes an equitable mortgage by deposit of title deeds, and any document by which the duration of a mortgage is extended, or the terms thereof varied, and an agreement for the sale and purchase or the exchange of lands; and also a hire-purchase agreement.