National Consumer Credit Protection Act 2009

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

Subdivision B of Division 1 applies in relation to the contract and the mortgage (see section 86A); and

just before the amount was received by the credit provider as described in paragraph 86A(1)(b), the debtor’s accrued liability described in paragraph 86A(1)(a) exceeded that amount; and

one or more of the conditions in section 86E are met (so that sections 86B, 86C and 86D do not apply).

If section 88 requires the credit provider to give the debtor or mortgagor a default notice before beginning enforcement proceedings to recover any of the excess, the credit provider must not begin them unless:

the default notice given to the debtor or mortgagor specifies:

the amount received by the credit provider; and

the debtor’s accrued liability just before that amount was received; and

the conditions in section 86E that are met; and

if the credit provider knows of a practising lawyer acting for the debtor or mortgagor and the credit provider gave the debtor or mortgagor the default notice by means other than giving it to the lawyer—the credit provider has given the lawyer a copy of the default notice at the same time as, or as soon as practicable after, giving the debtor or mortgagor the notice.