Document ID: chunk:federal_register_of_legislation:C2025C00167:section:185lb
Version: federal_register_of_legislation:C2025C00167
Segment Type: section
Provision Reference: s 185LB
Character Range: 582619–584409

185LB  Administrator to notify creditors of a 3‑month arrears default by a debtor
 (1) If a 3‑month arrears default by a debtor occurs at a particular time in relation to a debt agreement, the administrator of the debt agreement must notify, in writing, each creditor who is a party to the debt agreement of that occurrence within 10 business days of that occurrence.
 (2) The administrator of a debt agreement is not required to give a notification under subsection (1) in respect of a 3‑month arrears default (the first default) if:
 (a) one or more other 3‑month arrears defaults by the debtor have occurred in relation to the debt agreement; and
 (b) the 3‑month period to which the first default relates overlaps with the 3‑month period to which any of those other 3‑month arrears defaults relate; and
 (c) a notification under subsection (1) has already been given in respect of any of those other 3‑month arrears defaults.
 (3) For the purposes of this section, a 3‑month arrears default by a debtor occurs at a particular time (the test time) in relation to a debt agreement if:
 (a) at the beginning of the 3‑month period ending immediately before the test time, one or more payments (the due payments) in respect of provable debts became due and payable by the debtor under the debt agreement; and
 (b) throughout that 3‑month period, the debtor was in arrears in respect of any or all of the due payments; and
 (c) either:
 (i) the total amount that the debtor was so in arrears exceeds $300, or 20% of the total of all of the due payments at the beginning of that 3‑month period, whichever is higher; or
 (ii) if the total of all of the due payments at the beginning of that 3‑month period was $300 or less—no payment was made in that period to reduce any of the due payments.