Assignment of rights by credit provider
81 Assignment of rights by credit provider
A person—
S. 81(1)(a) amended by No. 72/1993 s. 15(b).
being a credit provider, shall not assign the whole or any part of his rights as a credit provider under a regulated contract to a person other than a registered credit provider or an exempt credit provider; and
S. 81(1)(b) amended by No. 72/1993 s. 15(b).
being a mortgagee under a mortgage relating to a regulated contract shall not, subject to subsection (2), assign the whole or any part of his rights as a mortgagee under the mortgage to a person other than a registered credit provider or exempt credit provider to whom he has assigned his rights under the credit contract—
unless the assignment—
is an assignment made bona fide by way of security in respect of a liability incurred by the assignor; or
S. 81(1)(d) amended by No. 52/1998 s. 24(1).
is made with the consent of the Director or the Tribunal.
- 10 penalty units.
Where a mortgage secures payment of a debt or other pecuniary obligation or the performance of any other obligation under a regulated contract and secures other moneys or the performance of any other obligation, subsection (1) does not apply to or in respect of an assignment of rights under the mortgage that do not relate to a regulated contract.
Subject to this section, where a credit provider or a mortgagee assigns his rights as a credit provider under a regulated contract or as a mortgagee under a regulated mortgage—
the debtor or mortgagor and, where there is a guarantee in relation to the contract of mortgage, the guarantor, have, under the contract mortgage or guarantee the same obligations to the assignee as they would have had to the credit provider or mortgagee if the assignment had not been made; and
subject to subsection (4), the debtor and mortgagor and any such guarantor have and may exercise the same rights in respect of the contract, mortgage or guarantee against the assignee as they have and may exercise against the credit provider or mortgagee.
An assignee under an assignment to which subsection (1) applies of the rights of a credit provider under a regulated contract or of a mortgagee under a mortgage relating to a regulated contract is not liable to the debtor or mortgagor under the contract or mortgage in respect of an amount exceeding the amount due to the assignee under the regulated contract at the date of the assignment.
The rights of a debtor, mortgagor or guarantor referred to in paragraph (b) of subsection (3) in respect of a regulated contract or a regulated mortgage may not be exercised otherwise than by way of a defence or set off in respect of a claim by the assignee under the regulated contract.
Subject to section 85—
where a credit provider assigns the whole or any part of his rights under a credit sale contract or a loan contract otherwise than in accordance with subsection (1), the debtor is not liable to pay the amount of the credit charge under the contract;
where a credit provider assigns the whole or any part of his rights under a regulated continuing credit contract otherwise than in accordance with subsection (1), the debtor is not liable to pay the amount of the credit charge for the billing cycle during which the assignment occurred; and
where a credit provider assigns the whole or any part of his rights as mortgagee under a regulated mortgage otherwise than in accordance with subsection (1)—
where the mortgage relates to a credit sale contract or a loan contract, the debtor is not liable to pay the amount of the credit charge under the contract; and
where the mortgage relates to a regulated continuing credit contract, the debtor is not liable to pay the amount of the credit charge for the billing cycle during which the assignment is made.
This section does not apply to or in respect of an assignment that occurs by operation of law.
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