Australian Securities and Investments Commission Regulations 2001

For paragraph 12BAA(7)(k) of the Act, each of the following is a credit facility:

the provision of credit:

for any period; and

with or without prior agreement between the credit provider and the debtor; and

whether or not both credit and debit facilities are available;

a facility:

known as a bill facility; and

under which a credit provider provides credit by accepting, drawing, discounting or indorsing a bill of exchange or promissory note;

the provision of credit by a pawnbroker in the ordinary course of a pawnbroker’s business (being a business which is being lawfully conducted by the pawnbroker);

the provision of credit by the trustee of the estate of a deceased person by way of an advance to a beneficiary or prospective beneficiary of the estate;

the provision of credit by an employer, or a related body corporate of an employer, to an employee or former employee (whether or not it is provided to the employee or former employee with another person);

the provision of a mortgage that secures obligations under a credit contract (other than a lien or charge arising by operation of any law or by custom);

a guarantee related to a mortgage mentioned in paragraph (f);

a guarantee of obligations under a credit contract;

a facility for making non‑cash payments if payments made using the facility will all be debited to a facility mentioned in paragraphs (a) to (h).

The provision of consumer credit insurance that includes a contract of general insurance for the Insurance Contracts Act 1984 is not a credit facility.

In this regulation:

under which:

payment of a debt owed by one person (a debtor) to another person (a credit provider) is deferred; or

one person (a debtor) incurs a deferred debt to another person (a credit provider); and

including any of the following:

any form of financial accommodation;

a hire purchase agreement;

credit provided for the purchase of goods or services;

a contract, arrangement or understanding for the hire, lease or rental of goods or services, other than a contract, arrangement or understanding under which:

full payment is made before or when the goods or services are provided; and

for the hire, lease or rental of goods—an amount at least equal to the value of the goods is paid as a deposit in relation to the return of the goods;

an article known as a credit card or charge card;

an article, other than a credit card or a charge card, intended to be used to obtain cash, goods or services;

an article, other than a credit card or a charge card, commonly issued to customers or prospective customers by persons who carry on business for the purpose of obtaining goods or services from those persons by way of a loan;

a liability in respect of redeemable preference shares;

a financial benefit arising from or as a result of a loan;

assistance in obtaining a financial benefit arising from or as a result of a loan;

issuing, indorsing or otherwise dealing in a promissory note;

drawing, accepting, indorsing or otherwise dealing in a negotiable instrument (including a bill of exchange);

granting or taking a lease over real or personal property;

a letter of credit.