National Consumer Credit Protection Act 2009

A credit provider must not enter into a credit contract for a reverse mortgage that provides a basis for beginning enforcement proceedings relating to the contract for an event described in subsection (3).

A credit provider must not agree to change, or unilaterally change, a credit contract for a reverse mortgage so that it provides a basis for beginning enforcement proceedings relating to the contract for an event described in subsection (3).

For the purposes of subsections (1) and (2), the events are as follows:

the debtor failing to inform the credit provider that another person occupies the reverse mortgaged property;

the debtor failing, when the debtor occupies the reverse mortgaged property, to give the credit provider evidence that the debtor, or another person nominated by the debtor to the credit provider, occupies or occupied the reverse mortgaged property;

the debtor leaving the reverse mortgaged property unoccupied while it is the debtor’s principal place of residence;

the debtor failing to pay a cost to a person other than the credit provider within 3 years after the payment became due;

the debtor failing to comply with a provision of the credit contract if the contract does not make it clear how the debtor is to comply with the provision;

the debtor breaching another credit contract with the credit provider;

an event that involves an act or omission by the debtor and is prescribed by the regulations.