New South Wales Consolidated Acts

INTEREST REDUCTION ACT 1931 - SECT 7

7 Power of court to modify or exclude provisions of section five

(1) Where an obligation to pay interest is affected by the provisions of section five of this Act, the creditor may at any time within three months after the commencement of this Act make application in accordance with this section to a court for an order modifying or excluding the operation of the said provisions in relation to such obligation.

(2) The application may be made to a judge of the Supreme Court or where the amount in respect of which interest is payable does not exceed one thousand pounds may be made to a Local Court.

(3) The application shall be by summons calling upon the debtor to show cause why the operation of the provisions of section five of this Act should not be modified or excluded in relation to the obligation upon the grounds specified in the summons.
The summons shall be in or to the effect of the prescribed form and shall be served as prescribed upon the debtor and upon such other persons, if any, as may be prescribed.

(4) The debtor or any such person may before the hearing of the application lodge an objection in the manner prescribed to the granting of the application and shall be entitled to be heard in support of such objection.

(5) Every application shall be heard in open court unless the court in its discretion directs that the application shall be heard in camera.

(6) Upon the hearing of the application the court may make such order as it deems just modifying or excluding the operation of the provisions of section five of this Act in relation to any obligation to pay interest if the creditor satisfies the court that:

(a) the interest has already been reduced, or

(b) the rate of interest was fixed subsequently to the first day of March, one thousand nine hundred and thirty-one, and such rate was by reason of the anticipation of a general reduction of interest rates by legislative action or otherwise fixed at a lower rate than would otherwise have been provided.

(7) The court may direct the summons to be served upon any person it thinks fit, and such person shall be entitled to appear and be heard.

(8) Any order made by a court under this section shall be final and conclusive.

(9) The court may make such order for the payment of costs as it deems just. The amount of any costs so ordered to be paid may be recovered by the person entitled thereto as a debt in any court of competent jurisdiction.