National Consumer Credit Protection Act 2009

This Subdivision applies in relation to a credit contract for a reverse mortgage and a mortgage securing the debtor’s obligations under the contract if:

the debtor’s accrued liability (whether or not due and payable) under the contract is more than the amount (the adjusted market value) worked out under subsection (2) for the reverse mortgaged property; and

the credit provider receives an amount at least equal to the adjusted market value for the reverse mortgaged property either:

as a payment accepted from the debtor under the credit contract; or

as proceeds of the sale by the credit provider of the reverse mortgaged property.

The adjusted market value for the reverse mortgaged property is the amount worked out by:

working out the market value of the property in accordance with the regulations (if any); and

adjusting that value in accordance with the regulations (if any).