Requirements to be met before credit provider can enforce guarantee against guarantor
90 Requirements to be met before credit provider can enforce guarantee against guarantor
A credit provider must not, under a guarantee, enforce a judgment against a guarantor unless:
the credit provider has obtained a judgment against the debtor for payment of the guaranteed liability and the judgment remains unsatisfied for 30 days after the credit provider has made a written demand for payment of the judgment debt; or
the court has relieved the credit provider from the obligation to obtain a judgment against the debtor on the ground that recovery from the debtor is unlikely; or
the credit provider has made reasonable attempts to locate the debtor but without success; or
the debtor is insolvent.
Criminal penalty: 50 penalty units.
Subsection (1) is an offence of strict liability.
For strict liability, see section 6.1 of the Criminal Code.
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