New South Wales Consolidated Acts

LOAN FUND COMPANIES ACT 1976 - SECT 36

36 Effect of cancellation

(1) Where notice of cancellation is given pursuant to section 35:

(a) the contract to which the notice relates shall be deemed to have been rescinded by mutual consent and never to have had effect,

(b) any collateral contract or contract of guarantee relating to that contract shall be deemed never to have had effect,

(c) any security given by:

(i) the person acquiring the shares or option in respect of money payable under that contract or any such collateral contract,

(ii) a guarantor in respect of money payable under that contract or any such collateral contract, or

(iii) a guarantor in respect of money payable under a contract of guarantee relating to that contract or any such collateral contract,

shall be deemed never to have been enforceable, and

(d) any money paid under that contract or any such collateral contract or contract of guarantee shall be due from and repayable by the loan fund company.

(2) Any money repayable under subsection (1) (d) shall be recoverable in a court of competent jurisdiction as a debt, and in any proceedings by a person for the recovery of that money, that person shall, if successful, be entitled to recover the person’s full costs, fees and other reasonable expenses, including reasonable costs incurred between solicitor and client.