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CORPORATIONS REGULATIONS 2001 - REG 7.1.06

Specific things that are not financial products: credit facility

             (1)  For subparagraph 765A(1)(h)(i) of the Act, each of the following is a credit facility :

                     (a)  the provision of credit:

                              (i)  for any period; and

                             (ii)  with or without prior agreement between the credit provider and the debtor; and

                            (iii)  whether or not both credit and debit facilities are available; and

                            (iv)  that is not a financial product mentioned in paragraph 763A(1)(a) of the Act; and

                             (v)  that is not a financial product mentioned in paragraph 764A(1)(a), (b), (ba), (f), (g), (h) or (j) of the Act; and

                            (vi)  that is not a financial product mentioned in paragraph 764A(1)(i) of the Act, other than a product the whole or predominant purpose of which is, or is intended to be, the provision of credit;

                     (b)  a facility:

                              (i)  known as a bill facility; and

                             (ii)  under which a credit provider provides credit by accepting, drawing, discounting or indorsing a bill of exchange or promissory note;

                     (c)  the provision of credit by a pawnbroker in the ordinary course of a pawnbroker's business (being a business which is being lawfully conducted by the pawnbroker);

                     (d)  the provision of credit by the trustee of the estate of a deceased person by way of an advance to a beneficiary or prospective beneficiary of the estate;

                     (e)  the provision of credit by an employer, or a related body corporate of an employer, to an employee or former employee (whether or not it is provided to the employee or former employee with another person);

                      (f)  a mortgage:

                              (i)  that secures obligations under a credit contract (other than a lien or charge arising by operation of any law or by custom); and

                             (ii)  that is not a financial product mentioned in paragraph 763A(1)(a) of the Act; and

                            (iii)  that is not a financial product mentioned in paragraph 764A(1)(a), (b), (ba), (f), (g), (h) or (j) of the Act; and

                            (iv)  that is not a financial product mentioned in paragraph 764A(1)(i) of the Act, other than a product the whole or predominant purpose of which is, or is intended to be, the provision of credit;

                     (g)  a guarantee related to a mortgage mentioned in paragraph (f);

                     (h)  a guarantee of obligations under a credit contract.

             (2)  The provision of consumer credit insurance that includes a contract of general insurance for the Insurance Contracts Act 1984 is not a credit facility.

          (2A)  A litigation funding scheme mentioned in regulation 5C.11.01 is not a credit facility.

          (2B)  A litigation funding arrangement mentioned in regulation 5C.11.01 is not a credit facility .

             (3)  In this regulation:

credit means a contract, arrangement or understanding:

                     (a)  under which:

                              (i)  payment of a debt owed by one person (a debtor ) to another person (a credit provider ) is deferred; or

                             (ii)  one person (a debtor ) incurs a deferred debt to another person (a credit provider ); and

                     (b)  including any of the following:

                              (i)  any form of financial accommodation;

                             (ii)  a hire purchase agreement;

                            (iii)  credit provided for the purchase of goods or services;

                            (iv)  a contract, arrangement or understanding for the hire, lease or rental of goods or services, other than a contract, arrangement or understanding under which:

                                        (A)  full payment is made before or when the goods or services are provided; and

                                        (B)  for the hire, lease or rental of goods--an amount at least equal to the value of the goods is paid as a deposit in relation to the return of the goods;

                             (v)  an article known as a credit card or charge card;

                            (vi)  an article, other than a credit card or a charge card, intended to be used to obtain cash, goods or services;

                           (vii)  an article, other than a credit card or a charge card, commonly issued to customers or prospective customers by persons who carry on business for the purpose of obtaining goods or services from those persons by way of a loan;

                          (viii)  a liability in respect of redeemable preference shares;

                            (ix)  a financial benefit arising from or as a result of a loan;

                             (x)  assistance in obtaining a financial benefit arising from or as a result of a loan;

                            (xi)  issuing, indorsing or otherwise dealing in a promissory note;

                           (xii)  drawing, accepting, indorsing or otherwise dealing in a negotiable instrument (including a bill of exchange);

                          (xiii)  granting or taking a lease over real or personal property;

                          (xiv)  a letter of credit.



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