DUTIES ACT 2001 - SECT 249 What is an advance

DUTIES ACT 2001 - SECT 249

249 What is an advance

(1) An
"advance" is the provision or obtaining of funds by way of financial accommodation by—

(a) a loan; or

(b) a bill facility that is 1 or more agreements, understandings or arrangements as a consequence of which a bill of exchange or promissory note—

(i) is drawn, accepted, endorsed or made; or

(ii) is held, negotiated or discounted.

(2) Subsection (1) (b) applies whether or not the funds are obtained from—

(a) the person who draws, accepts, endorses or makes the bill of exchange or promissory note; or

(b) a person who is a party to any of the agreements, understandings or arrangements.

(3) An
"advance" includes a contingent liability under section 259 .

(4) However, the term does not include an amount provided or obtained on the security of a mortgage for—

(a) insurance of the secured property against fire; or

(b) keeping or effecting a policy of life insurance; or

(c) payment of duty for the security or any loan other than a current account secured by the mortgage.