Document ID: chunk:federal_register_of_legislation:C2023C00275:clause:2_6
Version: federal_register_of_legislation:C2023C00275
Segment Type: clause
Provision Reference: sch 2 cl 6
Character Range: 61028–63508

6  Prohibition on engaging in credit activities in certain circumstances during the period

Prohibition on engaging in credit activities in certain circumstances
(1) A person must not engage in a credit activity unless:
 (a) the person:
 (i) is registered to engage in the credit activity; and
 (ii) has applied for a licence authorising the person to engage in the credit activity in accordance with section 36 of the National Credit Act; or
 (b) the person holds a licence authorising the person to engage in the credit activity.
Civil penalty: 2,000 penalty units.

Offence
(2) A person commits an offence if:
 (a) the person is subject to a requirement under subitem (1); and
 (b) the person engages in conduct; and
 (c) the conduct contravenes the requirement.
Criminal penalty: 200 penalty units, or 2 years imprisonment, or both.

Defences
(3) For the purposes of subitems (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:
 (i) an employee or director of the principal or of a related body corporate of the principal; or
 (ii) a credit 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:
 (i) is registered to engage in the credit activity, and has applied for a licence authorising the principal to engage in the credit activity in accordance with section 36 of the National Credit Act; or
 (ii) holds a licence authorising the principal to engage in the credit activity.
Note: For the purposes of subitem (2), a defendant bears an evidential burden in relation to the matter in subitem (3): see subsection 13.3(3) of the Criminal Code.
(4) For the purposes of subitems (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 subitems (1) and (2) under paragraph 41(1)(a), 41(3)(a) or 42(a).
Note: For the purposes of subitem (2), a defendant bears an evidential burden in relation to the matter in subitem (4): see subsection 13.3(3) of the Criminal Code.

Division 3—Application of Division 3 of Part 2‑1 of the National Credit Act in relation to registered persons and this Schedule