Victorian Consolidated Legislation

Credit Act 1984 - SECT 49

Application of Part

49. Application of Part



(1) Subject to subsection (2), a reference in this Part (other than in section
48) to a continuing credit contract is a reference to a continuing credit
contract under which-

   (a)  where credit is or may be provided to the debtor by way of the supply
        of cash by the credit provider or any other person (whether to the
        debtor or to another person)-a charge is or may be made for the
        provision of credit in respect of which the annual percentage rate
        exceeds fourteen per centum; or

   (b)  where credit is or may be provided to the debtor by the credit
        provider in respect of payment for goods or services supplied by the
        credit provider or any other person (whether to the debtor or to
        another person)-

   (i)  a charge, other than an account charge, is or may be made for the
        provision of credit;

   (ii) an amount, other than an account charge, owing at any time by the
        debtor is not required to be paid within the period of four months
        after it is first owed; or

   (iii) an amount, other than an account charge, owing at any time by the
        debtor is or will become payable by five or more instalments or by a
        deposit and four or more instalments.

(2) This Part does not apply to a continuing credit contract under which-

   (a)  where credit is or may be provided to the debtor by way of the supply
        of cash by the credit provider or any other person (whether to the
        debtor or to another person)-a charge is or may be made for the
        provision of credit in respect of which, where the payment of a debt
        or other pecuniary obligation or the performance of any other
        obligation under the continuing credit contract is secured by a
        mortgage of land-there is an acceptable rate of interest that does not
        exceed 14 per centum and a higher annual percentage rate that exceeds
        14 per centum but does not exceed the acceptable rate by more than 2
        per centum;

   (b)  an amount exceeding $20 000 is agreed as the maximum amount that at
        any time may be owed by the debtor under the contract; or

   (c)  an authorised deposit-taking institution or a pastoral finance company
        provides credit to a person by overdraft on current account.



(3) For the purposes of paragraph (b) of subsection (2), a continuing credit
contract shall be deemed not to be a contract under which an amount exceeding
$20 000 is agreed as the maximum amount that at any time may be owed by the
debtor under the contract where-

   (a)  under the contract, the debtor may not, otherwise than by reason of
        his default, owe more than $20 000 excluding any credit charge; or

   (b)  when the contract is made, it is probable, having regard to the terms
        of the contract and all other relevant considerations, that the amount
        owed by the debtor under the contract will not at any time exceed $20
        000 excluding any credit charge.

(4) Where more than one account is maintained under a continuing credit
contract, this Division (this section and sections 58, 59, 60 and 66 excepted)
has effect as if separate continuing credit contracts in the same terms as the
contract under which the accounts are maintained had been entered into in
relation to each account.