Victorian Consolidated Legislation

Credit Act 1984 - SECT 39

Acceptable rate of interest

39. Acceptable rate of interest



(1) Where the payment of a debt or other pecuniary obligation or the
performance of any other obligation under a loan contract is secured by a
mortgage of land, the loan contract may, notwithstanding section 40, include
an acceptable rate of interest and a higher annual percentage rate that does
not exceed the acceptable rate by more than 2 per centum.

(2) Where, in accordance with subsection (1), a loan contract includes two
annual percentage rates, the statement in accordance with section 38 of the
annual percentage rate required under section 36 shall be made in respect of
each rate.