Document ID: chunk:federal_register_of_legislation:F2022L00975:body:0:p2
Version: federal_register_of_legislation:F2022L00975
Segment Type: other
Provision Reference: 
Character Range: 2679–5493

provider to provide credit to a retail client under a short term credit facility except in accordance with the conditions in subsections (5) and (6).
(3) A short term credit provider or an associate must not impose or provide for fees and charges under a collateral contract in relation to a short term credit facility except in accordance with the conditions in subsections (5) and (6).
(4) A director of a short term credit provider or of an associate must not cause or authorise the provider or associate to impose or provide for fees and charges under a collateral contract in relation to a short term credit facility except in accordance with the conditions in subsections (5) and (6).
Conditions
(5) The total of:
           (a) the amount of credit fees and charges that may be imposed or provided for under the short term credit facility; and
           (b) the amount of fees and charges (excluding interest charges) that:
              (i) may be imposed or provided for under:
                  (A) a collateral contract; or
                  (B) a contract, arrangement or understanding that belongs to a series or combination that constitutes the short term credit facility (except for a fee or charge already counted under paragraph (a)); and
              (ii) are paid or payable by a retail client;
must not exceed the maximum amount of credit fees and charges permitted under subsection 6(1) of the National Credit Code.
(6) The total of:
           (a) the amount of interest charges that may be imposed or provided for under the short term credit facility; and
           (b) the amount of interest charges that:
              (i) may be imposed or provided for under:
                  (A) a collateral contract; or
                  (B) a contract, arrangement or understanding that belongs to a series or combination that constitutes the short term credit facility (except for an interest charge already counted under paragraph (a)); and
              (ii) are paid or payable by a retail client;
must not exceed the maximum amount of interest charges permitted under subsection 6(1) of the National Credit Code.

6 Application
(1)  This instrument applies in relation to a short term credit facility entered into on or after the commencement of this instrument.
(2)  For the avoidance of doubt, where a short term credit provider is not purporting to rely on subsection 6(1) of the National Credit Code in relation to a short term credit facility, subsections 5(1) to (4) of this instrument do not apply in relation to the facility.
       Note 1: The application of the orders in section 5 is subject to the limitations in section 1023C of the Act.
       Note 2: Subject to the Court making an order staying or otherwise affecting the operation of the orders in section 5, the orders will