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National Consumer Credit Protection Bill 2009

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2008-2009

 

The Parliament of the

Commonwealth of Australia

 

THE SENATE

 

 

 

National Consumer Credit Protection Bill 2009

 

 

(1)     Clause 5, page 9 (after line 11), after the definition of initial National Credit Act , insert:

initial National Credit Code : see subsection 20(2).

[State reference]

(2)     Clause 5, page 12 (after line 4), after the definition of record , insert:

referred credit matter : see subsection 20(1).

[State reference]

(3)     Clause 5, page 12 (line 5), omit the definition of referred credit matters .

[State reference]

(4)     Clause 6, page 16 (table item 1), omit “for or”.

[technical amendment]

(5)     Clause 6, page 16 (table item 3), omit “for or”.

[technical amendment]

(6)     Clause 6, page 16 (table item 4), omit “for or”.

[technical amendment]

(7)     Clause 6, page 17 (table item 5), omit “for or”.

[technical amendment]

(8)     Clause 8, page 18 (line 11), omit “for or”.

[technical amendment]

(9)     Clause 9, page 18 (line 26), omit “for or”.

[technical amendment]

(10)   Clause 19, page 27 (line 8), omit “making laws”, substitute “the making of laws”.

[technical amendment]

(11)   Clause 19, page 27 (lines 11 to 16), omit subclause (4), substitute:

Reference covering amendments of this Act or the Transitional Act

             (4)  This subsection covers the referred credit matters (see section 20) to the extent of the making of laws with respect to those matters by making express amendments of this Act or the Transitional Act.

[State reference]

(12)   Clause 19, page 28 (lines 6 to 14), omit the definition of express amendment , substitute:

express amendment of this Act or the Transitional Act means the direct amendment of the text of this Act or the Transitional Act (whether by the insertion, omission, repeal, substitution or relocation of words or matter) by another Commonwealth Act or by an instrument under a Commonwealth Act, but does not include the enactment by a Commonwealth Act of a provision that has, or will have, substantive effect otherwise than as part of the text of this Act or the Transitional Act.

[State reference]

(13)   Clause 19, page 28 (line 23), omit the definition of Trade Practices Act .

[State reference]

(14)   Clause 20, page 28 (line 24) to page 32 (line 3), omit the clause, substitute:

20   Meaning of referred credit matter

             (1)  Referred credit matter means a matter relating to either of the following:

                     (a)  credit, being credit the provision of which would be covered by the expression “provision of credit to which this Code applies” in the initial National Credit Code;

                     (b)  consumer leases, being consumer leases each of which would be covered by the expression “consumer lease to which Part 11 applies” in the initial National Credit Code.

             (2)   Initial National Credit Code means Schedule 1 to the initial National Credit Act.

[State reference]

(15)   Clause 22, page 33 (lines 9 to 13), omit the clause, substitute:

22   When Acts bind Crown

             (1)  This Act (other than the National Credit Code) and the Transitional Act do not bind the Crown in any of its capacities.

             (2)  Despite subsection (1), the regulations may provide that this Act (other than the National Credit Code) and the Transitional Act, or specified provisions of this Act (other than the National Credit Code) or the Transitional Act, bind either or both of the following in circumstances (if any) prescribed by the regulations:

                     (a)  the Crown in right of the Commonwealth;

                     (b)  the Crown in all of its other capacities.

             (3)  The National Credit Code binds the Crown in each of its capacities.

             (4)  This Act and the Transitional Act do not make the Crown liable to be prosecuted for an offence or to any pecuniary penalty.

[binding Crown]

(16)   Heading to subclause 29(3), page 40 (line 19), omit the heading, substitute:

Defences

[defences]

(17)   Clause 29, page 41 (after line 5), at the end of the clause, add:

             (4)  For the purposes of subsections (1) and (2), it is a defence if:

                     (a)  the person engages in the credit activity on behalf of another person (the principal ); and

                     (b)  the person is a representative of the principal; and

                     (c)  the person’s conduct in engaging in the credit activity is within the authority of the principal; and

                     (d)  the principal is exempted from subsections (1) and (2) under paragraph 109(1)(a), 109(3)(a) or 110(a).

Note:          For the purposes of subsection (2), a defendant bears an evidential burden in relation to the matter in subsection (4) (see subsection 13.3(3) of the Criminal Code ).

[defences]

(18)   Clause 36, page 47 (line 4), omit “January”, substitute “July”.

[implementation timetable]

(19)   Clause 54, page 64 (line 8), omit “ceases to engage in credit activities”, substitute “does not engage, or ceases to engage, in credit activities”.

[technical amendment]

(20)   Clause 97, page 97 (line 8), omit “for or”.

[technical amendment]

(21)   Clause 99, page 98 (line 4), omit “for or”.

[technical amendment]

(22)   Clause 109, page 107 (lines 12 and 13), omit paragraph (1)(a), substitute:

                     (a)  exempt:

                              (i)  a person; or

                             (ii)  a person and all of the person’s credit representatives;

                            from all or specified provisions to which this Part applies; or

[ASIC exemptions]

(23)   Clause 130, page 134 (lines 15 to 28), omit subclause (3).

[responsible lending conduct]

(24)   Clause 153, page 164 (lines 11 to 22), omit subclause (3).

[responsible lending conduct]

(25)   Clause 163, page 178 (lines 11 and 12), omit paragraph (1)(a), substitute:

                     (a)  exempt:

                              (i)  a person; or

                             (ii)  a person and all of the person’s credit representatives;

                            from all or specified provisions to which this Part applies; or

[ASIC exemptions]

(26)   Clause 178, page 188 (after line 34), at the end of subclause (1), add:

Note:          An order may be made under this subsection whether or not a declaration of contravention has been made under section 166.

[remedies]

(27)   Clause 179, page 189 (after line 30), at the end of subclause (1), add:

Note:          An order may be made under this subsection whether or not a declaration of contravention has been made under section 166.

[remedies]

(28)   Clause 180, page 191 (after line 21), at the end of subclause (1), add:

Note:          An order may be made under this subsection whether or not a declaration of contravention has been made under section 166.

[remedies]

(29)   Clause 253, page 249 (lines 6 and 7), omit “in the approved form given to the person”, substitute “given to the person in the form prescribed by the regulations”.

[prescribed forms]

(30)   Clause 274, page 264 (line 28), omit “section 63”, substitute “section 290”.

[technical amendment]

(31)   Clause 274, page 264 (line 29), omit “subsection 63(3)”, substitute “subsection 290(2)”.

[technical amendment]

(32)   Clause 284, page 270 (lines 6 and 7), omit “in the approved form given to a person”, substitute “given to a person in the form prescribed by the regulations”.

[prescribed forms]

(33)   Clause 327, page 301 (lines 8 to 10), omit paragraphs (1)(a) and (b), substitute:

                     (a)  a decision of ASIC under subsection 109(3) (which deals with certain exemptions from, and modifications of, Chapter 2); or

                     (b)  a decision of ASIC under subsection 163(3) (which deals with certain exemptions from, and modifications of, Chapter 3); or

                     (c)  a decision of ASIC under section 241 (which deals with approved codes of conduct); or

                     (d)  a decision of ASIC under Chapter 6 (which deals with compliance and enforcement), except for a decision of ASIC:

                              (i)  to make an order under subsection 300(1) (which deals with orders relating to credit contracts, mortgages, guarantees or consumer leases); or

                             (ii)  to make, or refuse to make, an order under subsection 301(1) (which deals with orders varying or revoking orders made under section 300); or

                     (e)  a decision of ASIC to make a determination under subsection 328(3) (which deals with determinations in relation to notice of reviewable decisions etc.); or

                      (f)  a decision of ASIC under subsection 6(17) of the National Credit Code (which deals with the exclusion of provisions of credit from the application of the National Credit Code); or

                     (g)  a decision of ASIC under subsection 171(6) of the National Credit Code (which deals with the exclusion of consumer leases from the application of the National Credit Code); or

                     (h)  a decision of ASIC under subsection 203A(3) of the National Credit Code (which deals with certain exemptions from the National Credit Code); or

                      (i)  a decision of ASIC under the regulations, unless the regulations specify that an application may be made to the Administrative Appeals Tribunal for review of the decision.

[AAT review of ASIC decisions]

(34)   Schedule 1, page 312 (lines 9 and 10), omit “all or any provisions of”.

[exemptions from the National Credit Code]

(35)   Schedule 1, page 312 (line 17), omit “all or any provisions of”.

[exemptions from the National Credit Code]

(36)   Schedule 1, page 312 (line 26), omit “all or any provisions of”.

[exemptions from the National Credit Code]

(37)   Schedule 1, page 313 (after line 2), insert:

Definitions

[technical amendment]

(38)   Schedule 1, page 331 (after line 9), at the end of Division 2, add:

26A   Regulations about residential investment property

                   The regulations may provide that section 25 or 26 applies in relation to a provision of credit covered by subparagraph 5(1)(b)(ii) or (iii) as if specified provisions were omitted, modified or varied as specified in the regulations.

[residential investment property interest]

(39)   Schedule 1, page 333 (after line 31), at the end of Division 3, add:

30A   Regulations about residential investment property

                   The regulations may provide that this Division applies in relation to a provision of credit covered by subparagraph 5(1)(b)(ii) or (iii) as if specified provisions were omitted, modified or varied as specified in the regulations.

[residential investment property interest]

(40)   Schedule 1, page 365 (line 3), omit “.”, substitute “; and”.

[giving reasons for refusal]

(41)   Schedule 1, page 365 (after line 3), at the end of paragraph (3)(b), add:

                            (iii)  the reasons for not agreeing to the change.

[giving reasons for refusal]

(42)   Schedule 1, page 386 (line 19), omit “.”, substitute “; and”.

[giving reasons for refusal]

(43)   Schedule 1, page 386 (after line 19), at the end of paragraph (2)(b), add:

                            (iii)  the reasons for not agreeing to negotiate.

[giving reasons for refusal]

(44)   Schedule 1, page 398 (lines 1 and 2), omit the heading to Part 6, substitute:

Part 6 Penalties for defaults of credit providers

[technical amendment]

(45)   Schedule 1, page 398 (lines 3 and 4), omit the heading to Division 1, substitute:

Division 1 Penalties for breach of key disclosure and other requirements

[technical amendment]

(46)   Schedule 1, page 399 (lines 15 and 16), omit the heading to clause 113, substitute:

113   Penalty may be imposed for contravention of key requirement

[technical amendment]

(47)   Schedule 1, page 405 (line 1), omit the heading to Division 2, substitute:

Division 2 Other penalties

[technical amendment]

(48)   Schedule 1, page 438 (lines 20 and 21), omit “all or any provisions of”.

[exemptions from the National Credit Code]

(49)   Schedule 1, page 438 (line 24), omit “all or any provisions of”.

[exemptions from the National Credit Code]

(50)   Schedule 1, page 438 (line 28), omit “all or any provisions of”.

[exemptions from the National Credit Code]

(51)   Schedule 1, page 459 (after line 29), at the end of Part 12, add:

Division 5 Exemptions from this Code

203A   Exemptions by ASIC

Exemptions

             (1)  ASIC may exempt a person, contract, mortgage, guarantee or consumer lease from all or specified provisions of this Code.

             (2)  An exemption under subsection (1) is not a legislative instrument.

             (3)  ASIC may, by legislative instrument, exempt a class of persons, contracts, mortgages, guarantees or consumer leases from all or specified provisions of this Code.

Conditions on exemptions

             (4)  An exemption may apply unconditionally or subject to specified conditions. A person to whom a condition specified in an exemption applies must comply with the condition. The court may order the person to comply with the condition in a specified way. Only ASIC may apply to the court for the order.

Publication of exemptions under subsection (1)

             (5)  An exemption under subsection (1) must be in writing and ASIC must publish notice of it on its website.

203B   Exemptions by the regulations

                   The regulations may:

                     (a)  exempt a person, contract, mortgage, guarantee or consumer lease from all or specified provisions of this Code; or

                     (b)  exempt a class of persons, contracts, mortgages, guarantees or consumer leases from all or specified provisions of this Code.

[exemptions from the National Credit Code]

(52)   Schedule 1, page 466 (line 26), after “affixed”, insert “predominantly”.

[predominantly residential purposes]

(53)   Schedule 1, page 466 (line 28), after “affixed”, insert “predominantly”.

[predominantly residential purposes]

(54)   Schedule 1, page 466 (line 34), after “affixed”, insert “predominantly”.

[predominantly residential purposes]

(55)   Schedule 1, page 467 (line 6), after “affixed”, insert “predominantly”.

[predominantly residential purposes]

(56)   Schedule 1, page 467 (line 13), after “affixed”, insert “predominantly”.

[predominantly residential purposes]