Document ID: chunk:federal_register_of_legislation:F2024C00882:reg:71:p2
Version: federal_register_of_legislation:F2024C00882
Segment Type: reg
Provision Reference: reg 71 (pt 2/3)
Character Range: 317043–319566

must be correct to at least the nearest one hundredth of 1% per annum.
 (5) In the application of the above formulae, reasonable approximations may be made if it would be impractical or unreasonably onerous to make a precise calculation.
Example: If repayments are to be made on a fixed day each month, it may be assumed that repayments will be made on that day each month even though the credit contract provides for payment on the preceding or succeeding business day when the due date is not a business day.
 (6) The tolerances and assumptions under sections 180 to 182 of the Code apply to the calculation of the comparison rate.
 (7) The comparison rate must be accompanied by a statement of the amount of credit on which it is based and the term for which credit is provided.
 (8) In the case of a comparison rate under subsection 16(3) of the Code:
 (a) the amount of credit is to be the amount (or the maximum amount) required by the debtor; and
 (b) the term for which credit is provided is to be the term (or the maximum term) required by the debtor; and
 (c) the amount of credit, in the case of a continuing credit contract, is not to exceed the credit limit required by the debtor.
 (9) If the debtor does not make a requirement in relation to a matter mentioned in paragraph (8)(a), (b) or (c), the credit provider may determine the matter.
 (10) In the case of a comparison rate under Part 10 of the Code:
 (a) the amount of credit and term are to be typical of the type of credit contract offered in the advertisement; and
 (b) a number of comparison rates may be included in the advertisement for different credit contracts if the amount of credit and term applicable to each of the rates are clearly stated.
 (11) At the time that the debtor is informed of the comparison rate under subsection 16(3) of the Code, the debtor must be given the following warning by the credit provider in writing:
  'WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.'
 (12) An advertisement that contains a comparison rate in accordance with Part 10 of the Code must include a warning that the comparison rate is accurate only for the example given.
 (13) A warning under this regulation must be given immediately after the comparison rate is given.
Note 1: