Credit (Repossession) Act 1997

1: Short Title and commencement
1: This Act may be cited as the Credit (Repossession) Act 1997.
2: This Act comes into force on 1 July 1998.
1: Preliminary
2: Interpretation
1: In this Act, unless the context otherwise requires,— advance
a: money provided by the creditor under the security agreement to the debtor or to another person to the order of the debtor:
b: a pre-existing monetary obligation of the debtor that is paid, discharged, or consolidated by the creditor under the security agreement:
c: the cash price of any consumer goods (if there is an agreement to sell the consumer goods or the debtor has an option to purchase the consumer goods):
d: in relation to a security agreement that secures the obligations of the debtor as guarantor under a guarantee, the amount of the debtor’s liability under that guarantee cash price consumer
a: the lowest price at which a person could have purchased those consumer
b: if there is no such price, the fair market value of those consumer consumer goods court section 39 section 40 creditor
a: means,—
i: in relation to a secured credit sale agreement, the person disposing of the goods under the agreement and, if the rights of that person are transferred by assignment or by operation of law, includes the person for the time being entitled to those rights:
ii: in relation to a security interest, the secured party within the meaning of section 16
iii:
b: includes, if the rights of such a person are transferred by assignment (whether absolutely or by way of mortgage) or operation of law, the person for the time being entitled to those rights creditor’s agent consumer debtor
a: means,—
i: in relation to a secured credit sale agreement, the person to whom goods are disposed of under the agreement and, if the rights of that person are transferred by assignment or by operation of law, includes the person for the time being entitled to those rights:
ii: in relation to a security interest, the debtor within the meaning of section 16
iii:
b: includes, if the rights of such a person are transferred by assignment (whether absolutely or by way of mortgage) or operation of law, the person for the time being entitled to those rights default security agreement consumer goods guarantor
a: for the purposes of the definition of advance
b: for the other purposes of this Act,—
i: means a person who guarantees the performance of a debtor’s obligations under a security agreement security agreement security agreement
ii: does not include a person who is the vendor of the consumer security agreement
iii: does not include a person who executes or enters into a guarantee in the ordinary course of a business carried on by him or her,— and guarantee holiday pay post-possession notice section 21 pre-possession notice section 9 residential premises secured credit sale agreement section 16 security agreement agreement section 16 security interest section 17
a: an interest in personal property created or provided for by a transfer of an account receivable or chattel paper, a lease for a term of more than 1 year, or a commercial consignment:
b: any security interest created by a company within the meaning of section 2(1) Industrial and Provident Societies Act 1908
2: For the purposes of this Act, the determination of whether goods are consumer goods is to be made by the debtor as at the time when the security interest in the goods attached within the meaning of the Personal Property Securities Act 1999 Section 2(1) advance inserted 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 2(1) amount of credit repealed 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 2(1) cash price amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 2(1) cash price amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 2(1) cash price amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 2(1) consumer goods inserted 1 May 2002 section 3(1) Credit (Repossession) Amendment Act 1999 Section 2(1) credit agreement repealed 1 May 2002 section 3(2) Credit (Repossession) Amendment Act 1999 Section 2(1) creditor substituted 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 2(1) creditor substituted 1 May 2002 section 3(3) Credit (Repossession) Amendment Act 1999 Section 2(1) creditor repealed 1 May 2002 section 3(3) Credit (Repossession) Amendment Act 1999 Section 2(1) creditor’s agent amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 2(1) debtor substituted 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 2(1) debtor substituted 1 May 2002 section 3(4) Credit (Repossession) Amendment Act 1999 Section 2(1) debtor repealed 1 May 2002 section 3(4) Credit (Repossession) Amendment Act 1999 Section 2(1) default amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 2(1) goods substituted 1 May 2002 section 3(5) Credit (Repossession) Amendment Act 1999 Section 2(1) guarantor amended 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 2(1) guarantor amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 2(1) guarantor amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 2(1) hire purchase agreement repealed 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 2(1) instrument by way of security repealed 1 May 2002 section 3(6) Credit (Repossession) Amendment Act 1999 Section 2(1) net balance due repealed 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 2(1) secured credit sale agreement inserted 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 2(1) security agreement agreement inserted 1 May 2002 section 3(7) Credit (Repossession) Amendment Act 1999 Section 2(1) security interest substituted 1 May 2002 section 3(8) Credit (Repossession) Amendment Act 1999 Section 2(2) added 1 May 2002 section 3(9) Credit (Repossession) Amendment Act 1999
3: Act binds the Crown
This Act binds the Crown.
4: Purpose of this Act
The purpose of this Act is to set out the rules that apply when a creditor takes possession of consumer security agreement Section 4 amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
5: Security agreements to which Act applies
1: This Act applies to a security agreement—
a: that creates or provides for a security interest in consumer goods; and
b: that is entered into on or after the date of commencement of the Credit (Repossession) Amendment Act 1999
2: This Act applies whether or not a financing statement has been registered under the Personal Property Securities Act 1999
3: This Act also applies as provided in section 51 Section 5 substituted 1 May 2002 section 4 Credit (Repossession) Amendment Act 1999
6: Act applies where creditor already has right to take possession, etc
1: This Act applies where a creditor has a right to take possession of consumer security agreement consumer
2: This Act does not confer a right to take possession of consumer
3: This Act is to be read subject to subsection (2). Section 6(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 6(2) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
2: Rules that apply before possession of goods is taken
7: Circumstances in which creditor can take possession
1: A creditor must not take possession of consumer
a: the debtor is in default under the security agreement
b: the consumer
2: In this section and section 8 consumer at risk consumer 1971 No 147 s 26(1)﻿(a) Section 7(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 7(1)﻿(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 7(1)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 7(2) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
8: Notice to be given to debtor and guarantor before taking possession of
consumer
1: A creditor must serve a pre-possession notice on the debtor, and on every guarantor of the debtor, before taking possession of consumer
2: This section does not apply if the consumer section 7(2) 1971 No 147 s 26(1)﻿(b), (4) Section 8 heading amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 8(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 8(2) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
9: Form of pre-possession notice
Every pre-possession notice must be in writing in the form set out in Schedule 1
a: specifying the nature of the default; and
b: requiring the debtor to remedy the default (if it is capable of being remedied) within the period specified in the notice (being a period of not less than 15 days after service of the notice on the debtor). 1971 No 147 s 26(1)﻿(b)
10: Creditor must allow time to remedy default
A creditor must not take possession of consumer
a: the period for remedying the default specified in the notice has expired; and
b: the debtor has failed, within that period, to remedy the default complained of in so far as it is capable of being remedied. 1971 No 147 s 26(1)﻿(c) Section 10 amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
11: Offences against this Part
Every person who contravenes any of sections 7 to 10 1971 No 147 s 26(5)
12: Debtor may apply to court for relief
A debtor may apply to a court for relief if—
a: a creditor serves a pre-possession notice on the debtor; or
b: a creditor has taken possession of the consumer in contravention of this Act. 1971 No 147 s 26(2) Section 12(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
13: Court may grant relief
1: The court may, having regard to—
a: the conduct of the parties; and
b: the nature of the default; and
c: such other matters as it thinks proper,— grant such relief to a debtor who applies under section 12 security agreement
2: The court may grant relief on such terms, if any, as to costs, expenses, damages, compensation, penalty, or otherwise as the court, in the circumstances of each case, thinks fit.
3: However, where the court determines that any application is vexatious, it must order—
a: that the debtor pay to the creditor the full costs (including reasonable costs incurred between solicitor and client), fees, and other reasonable expenses incurred by the creditor in connection with the application; and
b: that section 23(1) section 30 1971 No 147 s 26(2), (3) Section 13(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
3: Right of entry
14: Creditor must not enter premises in unreasonable manner
A creditor or a creditor’s agent must not exercise a right to enter premises in a manner that is unreasonable. 1971 No 147 s 27(1)
15: Creditor must not enter residential premises at prohibited time
1: The following are prohibited times for the purposes of this section:
a: outside the hours of 6 am to 9 pm on Mondays to Saturdays; or
b: any time on a Sunday; or
c: any time on a holiday.
2: A creditor or a creditor’s agent must not exercise a right to enter residential premises at a prohibited time unless the debtor consents in writing to the entry of those premises at a prohibited time.
3: The consent is not valid unless it is given—
a: after the default has occurred; and
b: before the creditor or creditor’s agent arrives at the premises with a view to taking possession of the consumer
4: The consent is not valid if the creditor or creditor’s agent seeks it in person at a prohibited time at any residential premises. Section 15(3)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
16: Certain persons disqualified from taking possession of
consumer
1: The following are disqualified persons for the purposes of this section:
a: any person who has been convicted within the preceding 5 years of any offence involving violence against the person, or of any crime involving dishonesty within the meaning of section 2
b: any person on whom there has been imposed, at any time, a sentence of imprisonment for a term of 10 years or more or a sentence of imprisonment for life:
c: any person who has been released from a prison
2: Every disqualified person commits an offence, and is liable on
a: enters, or attempts to enter, any premises for the purpose of taking possession of any consumer consumer
b: takes, or attempts to take, possession of any consumer
3: Any creditor or creditor’s agent who enters, or attempts to enter premises, is, for the purpose of this section, presumed, in the absence of evidence to the contrary, to be entering for the purpose of taking possession of consumer consumer Section 16 heading amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 16(1)﻿(c) amended 1 June 2005 section 206 Corrections Act 2004 Section 16(2) amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 16(2)﻿(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 16(2)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 16(3) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
17: Documents to be produced on entry
Every creditor or creditor’s agent who exercises a right of entry of premises must, on first entering the premises if anyone is present, and, if requested, at any subsequent time, produce—
a: a copy of the pre-possession notice (unless one was not required under section 8(2)
b: in the case of a creditor’s agent, evidence reasonably capable of establishing the person’s authority to take possession of the consumer
c: in the case of an entry outside the hours specified in section 15 Section 17(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
18: Entry if occupier not present
1: This section applies if a creditor or creditor’s agent enters premises for the purpose of taking possession of consumer consumer
2: The creditor or creditor’s agent must, before leaving the premises, leave a notice in writing in a prominent place—
a: specifying that the premises have been entered and the date of entry; and
b: containing an inventory of any consumer
c: accompanied by a copy of the documents referred to in section 17(a) to (c)
3: The creditor or creditor’s agent must take such steps as are reasonably practicable to ensure that the premises are not left obviously open. Section 18(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 18(2)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
19: Offence to obstruct taking possession of
consumer Every person commits an offence against this Act, and is liable on consumer 1971 No 147 s 26(6) Section 19 heading amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 19 amended 1 July 2013 section 413 Criminal Procedure Act 2011 Section 19 amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
3A: Rules that apply in relation to taking possession of accessions
Part 3A inserted 1 May 2002 section 5 Credit (Repossession) Amendment Act 1999
19A: Interpretation
In this Part, unless the context otherwise requires,— accession other goods whole Section 19A inserted 1 May 2002 section 5 Credit (Repossession) Amendment Act 1999
19B: Creditor must not damage consumer goods when removing accession
A creditor who is entitled to take possession of an accession under this Act must remove the accession from the whole in a manner that causes no greater damage to the other goods or that puts the person in possession of the whole to no greater inconvenience than is necessarily incidental to the removal of the accession. Personal Property Security Act 1993 s 38(7) (Saskatchewan) Section 19B inserted 1 May 2002 section 5 Credit (Repossession) Amendment Act 1999
19C: Person with interest in other goods entitled to reimbursement for damage caused by removal of accession
1: A person, other than the debtor, who has an interest in the other goods at the time the goods become an accession is entitled to reimbursement for any damage to that person’s interest in the other goods caused by the removal of the accession.
2: Any reimbursement payable under subsection (1) does not include reimbursement for a reduction in the value of the property caused by the absence of the accession or by the necessity of the replacement of the accession. Personal Property Security Act 1993 s 38(8) (Saskatchewan) Section 19C inserted 1 May 2002 section 5 Credit (Repossession) Amendment Act 1999
19D: Person entitled to reimbursement may refuse permission to remove accession
A person entitled to reimbursement under section 19C Personal Property Security Act 1993 s 38(9) (Saskatchewan) Section 19D inserted 1 May 2002 section 5 Credit (Repossession) Amendment Act 1999
19E: Secured party may apply to court for order in respect of removal of accession
The court may, on an application made by a creditor, make an order—
a: determining who is entitled to reimbursement under section 19C
b: determining the amount and kind of security to be provided by the creditor:
c: prescribing the amount and kind of security to be provided by the creditor:
d: prescribing the depository for the security:
e: dispensing with the need for the permission of any or all persons entitled to reimbursement under section 19C Personal Property Security Act 1993 s 38(10) (Saskatchewan) Section 19E inserted 1 May 2002 section 5 Credit (Repossession) Amendment Act 1999
19F: Secured party must give notice of removal of accession
1: The creditor who is entitled to remove the accession from the whole must give notice of the creditor’s intention to remove the accession to each of the following persons:
a: a person who is known by the creditor to have an interest in the other goods or in the whole:
b: a person who has registered a financing statement in the name of the debtor and referring to the other goods:
c: a person who has registered a financing statement containing the serial number of the other goods as required or authorised by regulations made under the Personal Property Securities Act 1999
2: The notice referred to in subsection (1) must be given not less than 10 working days before the removal of the accession and must contain—
a: the name and address of the creditor; and
b: a description of the goods to be removed; and
c: a description of the other goods; and
d: the amount due to the creditor and the value of the accession if the accession were removed from the other goods; and
e: a statement of intention to remove the accession, unless the lesser of the amount secured or the value of the accession is paid on or before a specified date that is not less than 10 working days after the notice is given.
3: This section does not apply if—
a: the creditor believes on reasonable grounds that the consumer goods will decline substantially in value if they are not disposed of immediately after default; or
b: the cost of care and storage of the consumer goods is disproportionately large in relation to their value; or
c: for any other reason, a court on an ex parte Personal Property Security Act 1993 s 38(12), (13) (Saskatchewan) Section 19F inserted 1 May 2002 section 5 Credit (Repossession) Amendment Act 1999
19G: When person with interest in whole may retain accession
A person, other than the debtor, who has an interest in the whole that under this Act is subordinate to a security interest in the accession may retain the accession on payment to the creditor with a security interest that has priority over all other security interests in the accession of the lesser of—
a: the amount due to the creditor; or
b: the value of the accession if the accession were removed from the other goods. Section 19G inserted 1 May 2002 section 5 Credit (Repossession) Amendment Act 1999
19H: Court may make order concerning removal of accession
The court may, on the application of a person entitled to receive a notice under section 19F
a: postponing the removal of the accession:
b: determining the amount payable to the creditor under section 19G Personal Property Security Act 1993 s 38(15) (Saskatchewan) Section 19H inserted 1 May 2002 section 5 Credit (Repossession) Amendment Act 1999
4: Rules that apply after possession of goods is taken
20: Notice to be given to debtor and guarantor after taking possession of
consumer A creditor must serve a post-possession notice on the debtor, and on every guarantor of the debtor, within 21 days of taking possession of consumer 1971 No 147 s 28(1) Section 20 heading amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 20 amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
21: Form of post-possession notice
Every post-possession notice must be in writing in the form set out in Schedule 2 1971 No 147 s 28(1)
21A: Notice of sale of consumer goods to other creditors
1: A creditor who intends to sell consumer goods must, in addition to any other notices that the creditor must give under this Act, give notice to the following persons, within 21 days of taking possession of consumer goods:
a: any person who has registered a financing statement in respect of the consumer goods that is effective at the time the creditor took possession of the consumer goods:
b: any other person that has given the creditor notice that that person claims an interest in the consumer goods.
2: Subsection (1) does not apply if—
a: the consumer goods may perish within 21 days of the creditor taking possession; or
b: the creditor believes on reasonable grounds that the consumer goods will decline substantially in value if they are not disposed of immediately after default; or
c: the cost of care and storage of the consumer goods is disproportionately large in relation to their value; or
d: for any other reason, a court on an ex parte Personal Property Security Act 1993 s 59(6), (16) (Saskatchewan) Section 21A inserted 1 May 2002 section 6 Credit (Repossession) Amendment Act 1999
22: Consequences of not giving post-possession notice
If a post-possession notice is not served as required by this Act,—
a: the costs of taking possession of the consumer
b: the creditor is not entitled to recover those costs from the debtor or the guarantor. 1971 No 147 s 28(2) Section 22(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
23: Creditor must not sell
consumer
1: Where a creditor has taken possession of any consumer consumer consumer consumer
2: This section applies except as provided in an order under section 13(3) 1971 No 147 s 28(3) Section 23 heading amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 23(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
24: Consequences of selling within 15 days of post-possession notice
If the creditor contravenes section 23
a: the liability of the debtor for anything other than—
i: the advance security agreement
ii: where the agreement secures the performance of some obligation other than the payment of money, the performance of that obligation,— is extinguished; and
b: the creditor must repay any money already paid to the creditor by any person on account of, or in satisfaction of, any amount in respect of which liability is extinguished by paragraph (a). 1971 No 147 s 28(4) Section 24(a)﻿(i) amended 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 24(a)﻿(i) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
25: Creditor must sell
consumer
1: The creditor must offer the consumer
2: This section does not apply if—
a: the debtor reinstates the agreement under section 28
b: the debtor introduces a buyer under section 30 consumer
c: the debtor settles the agreement under section 31
d: the court determines otherwise in an order under section 13(3) 1971 No 147 s 28(5) Section 25 heading amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 25(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 25(2)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
26: Rules relating to sale by creditor
1: Any sale by a creditor may be by auction or public tender or a private sale but, in any case, the creditor must ensure that every aspect of the sale, including the manner, time, place, and terms, is commercially reasonable and, in particular, must use all reasonable efforts to obtain the best price.
2: Unless the consumer
a: the time and place of any proposed offering of the consumer
b: any proposed offering of the consumer
3: The creditor and the debtor are each entitled to bid at any public auction or, where the consumer consumer
4: The onus of proving that the consumer
5: Subsection (1) does not apply if—
a: the debtor introduces a buyer under section 30 consumer
b: the debtor forces sale under section 32 1971 No 147 s 28(6)–(9) Section 26(2) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 26(2)﻿(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 26(2)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 26(3) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 26(4) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 26(5)﻿(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
27: Debtor may obtain valuation of
consumer
1: The debtor is entitled to obtain, at the debtor’s expense, 1 valuation of the consumer
2: The rules relating to valuations are as follows:
a: the valuation may take place at any time after the creditor takes possession of the consumer consumer
b: the debtor must request access to the consumer
c: the creditor must permit the debtor’s valuer such access to the consumer consumer
d: the debtor’s valuer must carry out the valuation at a reasonable time:
e: the debtor’s valuer has no right to remove the consumer
f: the debtor may accompany his or her valuer when the valuation takes place. Section 27 heading amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 27(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 27(2)﻿(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 27(2)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 27(2)﻿(c) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 27(2)﻿(e) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
28: Debtor’s right to reinstate agreement
1: The debtor may, at any time after the creditor has taken possession of the consumer consumer
a: paying to the creditor the amount required to reinstate the agreement or, where the agreement secures the performance of an obligation other than the payment of money, performing any accrued obligations; and
b: remedying any default in so far as it is capable of being remedied.
2: In this section,—
a: the amount required to reinstate the agreement
i: any amounts which have fallen due for payment under the security agreement advance advance
ii: the reasonable costs and expenses of the creditor of and incidental to taking possession of, holding, storing, repairing, maintaining, valuing, and preparing for the sale of, the consumer
iii: the costs reasonably and actually incurred by the creditor in doing any act, matter, or thing necessary to remedy any default by the debtor:
b: accrued obligations security agreement
3: This section applies except as provided in an order under section 13(3) 1971 No 147 s 29(1)﻿(a), (2) Section 28(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 28(2)﻿(a)﻿(i) amended 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 28(2)﻿(a)﻿(i) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 28(2)﻿(a)﻿(ii) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 28(2)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
29: Consequences of reinstating agreement
1: Where the right to reinstate the agreement is exercised under section 28
a: upon the receipt of the required amount, or confirmation of the performance of the accrued obligations and the default being remedied, the creditor must forthwith return the consumer
b: the debtor is deemed to receive and hold the returned consumer security agreement consumer
2: Where the consumer consumer
a: by notice in writing served on the debtor at the time of the return of the consumer
b: the debtor fails to remedy the default within a period to be specified in the notice (being a period of not less than 14 days after the service of the notice on the debtor). 1971 No 147 s 29(1)﻿(a), (3) Section 29(1)﻿(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 29(1)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 29(2) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 29(2)﻿(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
30: Debtor’s right to introduce buyer
1: The debtor may, at any time after the creditor has taken possession of the consumer consumer consumer consumer consumer
2: This right may be exercised by giving to the creditor a notice in writing signed by the debtor, or his or her agent.
3: This section applies except as provided in an order under section 13(3) 1971 No 147 s 29(1)﻿(b) Section 30(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
31: Debtor’s right to settle agreement
1: The debtor may, at any time after the creditor has taken possession of the consumer consumer security agreement
a: by paying to the creditor the amount required to settle the agreement; or
b: where the agreement secures the performance of an obligation other than the payment of money, by performing that obligation.
2: In this section, the amount required to settle the agreement
a: means the balance of the advance outstanding, together with any interest and charges payable under the agreement; and
b:
c: includes the reasonable costs and expenses of the creditor of and incidental to taking possession of, holding, storing, repairing, maintaining, valuing, and preparing the sale of, the consumer
d: includes the costs reasonably and actually incurred by the creditor in doing any act, matter, or thing necessary to remedy any default by the debtor.
3: Where the right to settle the agreement is exercised,—
a: upon the receipt of that amount, or confirmation of the performance of that obligation, the creditor must forthwith return the consumer
b: the agreement terminates, with the rights and obligations of the parties to it satisfied. 1971 No 147 s 30 Section 31(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 31(2)﻿(a) substituted 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 31(2)﻿(b) repealed 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003 Section 31(2)﻿(c) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 31(3)﻿(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
32: Debtor’s right to force sale
1: If the consumer
a: apply to the court for an order directing the sale of the consumer
b: require the creditor to put the consumer
2: The period of 3 months commences with the date on which the creditor takes possession of the consumer
3: Upon application under this section, the court may make such order as it thinks fit.
4: The following rules apply to a sale required under subsection (1)﻿(b):
a: the debtor must require the sale by notice in writing to the creditor, signed by the debtor or the debtor’s agent; and
b: the auction must be held within 2 months after the date that notice is given; and
c: the auction must be in such manner as may be agreed between the creditor and the debtor, and, failing agreement, in such manner as may be approved by a Registrar of the District Court; and
d: the creditor must give the debtor reasonable notice of the time and place of the auction; and
e: the creditor and the debtor are each entitled to bid at the auction; and
f: there must be no reserve price. 1971 No 147 s 31 Section 32(1) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 32(1)﻿(a) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 32(1)﻿(b) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 32(2) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
32A: Disposal of consumer goods to purchaser for value and in good faith
1: A purchaser for value and in good faith who takes possession of consumer goods sold by a creditor takes the consumer goods free from the following interests:
a: the interest of the debtor:
b: any interest subordinate to that of the debtor:
c: any interest subordinate to that of the creditor.
2: Subsection (1) applies whether or not registrations relating to security interests that are subordinate to the security interest of the creditor selling the consumer goods have been removed from the register. Personal Property Security Act 1993 s 61(7) (Saskatchewan) Section 32A inserted 1 May 2002 section 7 Credit (Repossession) Amendment Act 1999
32B: Extinguishment of subordinate security interests on sale
If consumer goods have been sold under section 26 section 32 Section 32B inserted 1 May 2002 section 7 Credit (Repossession) Amendment Act 1999
33: Creditor to give statement of account to debtor
Where consumer section 26 section 32 consumer and the persons referred to in section 21A(1)
a: the amount of the gross proceeds of sale:
b: the amount of the costs and expenses of and incidental to the sale:
c: the amount required to settle the agreement under section 31
d: the balance owing by the creditor to the debtor, or by the debtor to the creditor, as the case may be. 1971 No 147 s 32 Section 33 amended 1 May 2002 section 8 Credit (Repossession) Amendment Act 1999 Section 33 amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
34: Distribution of surplus
1: If a creditor has sold consumer goods under section 26 section 32
a: any person who has registered a financing statement in the name of the debtor over the consumer goods that are sold where—
i: the registration was effective immediately before the consumer goods were sold; and
ii: the security interest relating to that registration was subordinate to the security interest of the creditor who sold the consumer goods:
b: any other person who has given the creditor notice that that person claims an interest in the consumer goods that are sold and in respect of which the creditor is satisfied that that person has a legally enforceable interest in the consumer goods:
c: the debtor.
2: The security interests to which subsection (1)﻿(a) applies must be paid in the order of their priority as determined by Part 7 Part 8
3: Subsection (1) applies despite the extinguishment of a security interest under section 32B Personal Property Security Act 1993 s 60(2) (Saskatchewan) Section 34 substituted 1 May 2002 section 9 Credit (Repossession) Amendment Act 1999
34A: Surplus may be paid into court
1: The creditor may pay the surplus into court if there is a question as to who is entitled to receive payment under section 34
2: The surplus may be paid out only on an application by a person claiming an entitlement to the surplus. Personal Property Security Act 1993 s 60(4) (Saskatchewan) Section 34A inserted 1 May 2002 section 9 Credit (Repossession) Amendment Act 1999
34B: Debtor’s, etc, right to recover surplus
The persons referred to in section 34 Section 34B inserted 1 May 2002 section 9 Credit (Repossession) Amendment Act 1999
35: Limit on creditor’s right to recover from debtor
If the net proceeds of sale are less than the amount required to settle the agreement under section 31 1971 No 147 s 34
36: Court may vary existing judgments or orders when
consumer In any legal proceedings in relation to a security agreement consumer sections 34 35 1971 No 147 s 35 Section 36 heading amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 36 amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
36A: Voluntary return of goods
1: A secured credit sale agreement is terminated by the return of the consumer goods comprised in the agreement if they are returned—
a: in accordance with any term of the agreement that permits the debtor to return the goods and terminate the agreement; or
b: by the debtor for the purpose of terminating the agreement and the creditor agrees to the termination of the agreement.
2: Subject to section 36B
3: Nothing in this section or section 36B 1971 No 147 s 24(1), (2), (7) Section 36A inserted 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003
36B: Various effects of voluntary return of goods
1: If a secured credit sale agreement fixes or provides for the fixing of the amount (if any) to be paid by the debtor in the case of the voluntary termination of the agreement by the debtor, the amount (if any) that the creditor is entitled to recover from the debtor must not exceed that amount.
2: The creditor must, unless the creditor elects to regard the goods as still having a value that is not less than 80% of the cash price, sell the consumer goods in accordance with section 26 sections 33 to 35
3: If the creditor elects to regard the goods as having a value that is not less than 80% of the cash price, the creditor must, within 14 days of the termination of the agreement, serve on the debtor a statement in accordance with section 33
4: Except to the extent that sections 7 to 36 section 36A section 34(2)
5: The provisions of this section and of sections 7 to 36 1971 No 147 s 24(3)–(6) Section 36B inserted 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003
5: Miscellaneous provisions
37: Power of court to extend times
Any time prescribed by this Act for the service or giving of any notice or other document or for the commencement of any proceedings may, on an application made to the court (either before or after the expiration of that time but after notice to the other party to the agreement), be extended by that court for such further period, and upon such conditions, as the court thinks fit. 1971 No 147 s 45
38: Service of notices
1: Any notice or other document required or authorised by this Act to be served on or given to any person must be in writing and is sufficiently served or given if—
a: it is delivered to that person; or
b: it is left at that person’s usual or last known place of abode or business or at an address specified for that purpose in the agreement; or
c: it is posted in a letter addressed to that person by name at that place of abode or business or address.
2: If the person is absent from New Zealand, the notice or other document may be served on or given to the person’s agent in New Zealand.
3: If the person is deceased, it may be served on or given to the person’s personal representatives.
4: If the person is not known, or is absent from New Zealand and has no known agent in New Zealand, or is deceased and has no personal representatives, the notice or other document must be served or given in such manner as may be directed by an order of the court.
5: If any such notice or other document is sent to any person by registered letter, it is deemed to have been delivered to the person on the fourth day after the day on which it was posted, and in proving the delivery it is sufficient to prove that the letter was properly addressed and posted.
6: Notwithstanding anything in the foregoing provisions of this section, the court may in any case make an order directing the manner in which any notice or other document is to be served or given, or dispensing with the service or giving thereof.
7: This section does not apply to notices or other documents served or given in any proceedings in any court. 1971 No 147 s 46
39: Jurisdiction of District Courts
A District Court has jurisdiction to exercise any of the powers conferred by any of the provisions of this Act in any case where—
a: the occasion for the exercise of the power arises in the course of any civil proceedings properly before the court; or
b: the total amount in respect of which an order of the court is sought is not more than $200,000; or
c: the parties agree, in accordance with section 37 1971 No 147 s 47
40: Jurisdiction of Disputes Tribunals
1: A Disputes Tribunal established under the Disputes Tribunals Act 1988
2: Subject to this section, an order of a Disputes Tribunal under any of the provisions of this Act must not—
a: require a person to pay an amount exceeding $3,000:
b: declare a person not liable to another for an amount exceeding $3,000:
c: vest any consumer
d: direct the transfer or assignment or delivery of possession of consumer and an order of a Tribunal that exceeds any such restriction is entirely of no effect.
3: Where, in respect of any proceedings properly before a Disputes Tribunal, the jurisdiction of the Tribunal has been extended under an agreement made pursuant to section 13
4: Any reference in this section to $3,000 is, if a greater amount is from time to time specified in section 10
5: The reference in subsection (3) of this section to $5,000 is, if a greater amount is from time to time specified in section 13 1971 No 147 s 47A Section 40(2)﻿(c) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999 Section 40(2)﻿(d) amended 1 May 2002 section 11 Credit (Repossession) Amendment Act 1999
41: Time for filing charging document
Despite anything to the contrary in section 25 Section 41 replaced 1 July 2013 section 413 Criminal Procedure Act 2011
42: No contracting out
1: The provisions of this Act have effect despite any provision to the contrary in any security agreement.
2: Section 56
3: Every creditor commits an offence against section 13(i) Section 42 substituted 1 May 2002 section 10 Credit (Repossession) Amendment Act 1999
43: Application of law relating to illegal contracts
The fact that an act which contravenes any of the provisions of this Act has been committed in the course of the performance of any contract does not—
a: make that contract illegal; or
b: except as expressly provided in this Act, make that contract or any provision of that contract unenforceable or of no effect. 1971 No 147 s 52
44: Power to amend forms
The Governor-General may from time to time, by Order in Council, add to or omit anything from any form in a schedule of this Act, or otherwise amend any such form, or revoke any schedule and substitute a new one.
6: Amendments to other enactments
45: Amendments to Chattels Transfer Act 1924
Section 45 repealed 1 May 2002 section 192(1) Personal Property Securities Act 1999
46: Amendment to Insolvency Act 1967
Amendment(s) incorporated in the Act(s)
47: Amendments to Hire Purchase Act 1971
Section 47 repealed 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003
48: Amendment to Credit Contracts Act 1981
Section 48 repealed 1 April 2005 section 139 Credit Contracts and Consumer Finance Act 2003
49: Amendment to Disputes Tribunals Act 1988
Amendment(s) incorporated in the Act(s)
50: Amendments to Income Tax Act 1994
Section 50 repealed 1 April 2005 section YA 2 Income Tax Act 2004
51: Transitional provision relating to existing hire purchase agreements
1: This Act also applies to any hire purchase agreement entered into before the commencement of this Act.
2: However, this Act does not apply to any repossession commenced before the commencement of this Act, and the Hire Purchase Act 1971 continues to apply as if this Act had not been passed.
3: A repossession is deemed to have commenced if a notice has been served under section 26 of the Hire Purchase Act 1971 or possession of goods has been taken in contravention of that section.