Commonwealth Consolidated Regulations

NATIONAL CONSUMER CREDIT PROTECTION REGULATIONS 2010 - REG 28VC

  (1)   The drawdown cap applies to a monetary benefit given (whether directly or indirectly) to a licensee, or a representative of a licensee, if:

  (a)   the benefit relates to a credit contract secured by a mortgage over residential property; and

  (b)   the benefit does not relate to a reverse mortgage; and

  (c)   the benefit does not relate to a line of credit facility; and

  (d)   the benefit does not relate to:

  (i)   the provision of credit under a home renovation or improvement facility; or

  (ii)   the provision of credit wholly or partly to refinance credit, where the original or additional credit is provided under a home renovation or improvement facility; and

  (e)   the benefit is given within 1 year beginning on:

  (i)   for the provision of credit that is not wholly or partly to refinance credit--the first day on which an amount of credit is provided to the consumer under the credit contract; or

  (ii)   for the provision of credit that is wholly or partly to refinance credit--the first day on which an amount of credit is provided to the consumer under the credit contract after the refinanced credit is made available.

  (2)   The year to which the drawdown cap applies in relation to a credit contract is the period worked out under paragraph   (1)(e).

  (3)   A line of credit facility means a facility made available under a continuing credit contract under which the debtor is not obliged to repay any amounts of credit provided under the facility, or otherwise reduce the debtor's liability under the facility, until:

  (a)   the debtor's total liability under the facility (including the amounts of credit provided under the facility, interest charges in relation to the facility and fees and charges payable in relation to the facility) reaches or exceeds the limit specified in the credit contract for the facility; or

  (b)   if credit is available to the debtor under the facility only for a specified period--the period has ended.

  (4)   A home renovation or improvement facility is a facility:

  (a)   made available under a credit contract; and

  (b)   the whole or predominant purpose of which is to provide credit to renovate or improve residential property.