Document ID: chunk:federal_register_of_legislation:C2024C00826:clause:1_48
Version: federal_register_of_legislation:C2024C00826
Segment Type: clause
Provision Reference: sch 1 cl 48
Character Range: 830651–831501

48  Third party mortgages prohibited
 (1) A credit provider must not enter into a mortgage to secure obligations under a credit contract unless each mortgagor is a debtor under the contract or a guarantor under a related guarantee.
 (2) A credit provider must not enter into a mortgage to secure obligations under a guarantee unless each mortgagor is a guarantor under the guarantee or a debtor under the related credit contract.
 (3) A mortgage which does not comply with this section is unenforceable.
 (4) The court may, on the application of a party to a mortgage that is unenforceable because of this section, order that the credit provider takes such steps as are necessary to discharge the mortgage.
 (5) In this section, a reference to a credit contract or guarantee includes a reference to a proposed credit contract or proposed guarantee.