Victorian Consolidated Legislation

Credit Act 1984 - SECT 23

Consequence of discharge of certain contracts

23. Consequence of discharge of certain contracts



(1) Where a regulated credit sale contract is rescinded or discharged (whether
under this Act or any other Act or law), any mortgage or guarantee that
relates to the contract is also discharged to the extent that it secures or
guarantees the payment of a debt or other pecuniary obligation, or the
performance of any other obligation, under the regulated credit sale contract.





(2) Where a contract of sale is rescinded or discharged (whether under this
Act or any other Act or law)-

   (a)  any regulated loan contract relating to the contract of sale and made
        by the buyer with the supplier is also discharged to the extent that
        it provides for the payment of a debt or other pecuniary obligation,
        or the performance of any other obligation relating to the contract of
        sale; and

   (b)  any mortgage or guarantee relating to the regulated loan contract to
        the extent that the contract is discharged is also discharged to the
        extent that it secures or guarantees the payment of a debt or other
        pecuniary obligation, or the performance of any other obligation,
        under the regulated loan contract.

(3) Where a contract of sale is rescinded or discharged (whether under this
Act or under any other Act or law) and-

   (a)  in respect of the contract of sale, there is a regulated continuing
        credit contract made by the buyer with the supplier; and

   (b)  in relation to the regulated continuing credit contract there is a
        regulated mortgage or a guarantee-

that mortgage or guarantee is, at the same time as the contract of sale is
rescinded or discharged, discharged to the extent that it secures or
guarantees the payment of the amount entered in the account of the debtor kept
by the credit provider under the contract in relation to the contract of sale
and the amount (if any) of credit charges so entered and attributable to the
contract of sale.