Document ID: chunk:federal_register_of_legislation:F2024C00882:schedule:1:p10
Version: federal_register_of_legislation:F2024C00882
Segment Type: schedule
Provision Reference: sch 1 (pt 10/40)
Character Range: 419740–422862

officer from NICRI call [provider to insert NICRI number].

Form 8—Disclosure about guarantee

section 55 of the Code
regulation 81 of the Regulations

IMPORTANT

BEFORE YOU SIGN                                                                                                       THINGS YOU MUST KNOW

  * READ THIS GUARANTEE AND THE CREDIT CONTRACT DOCUMENT.                                                               * Understand that, by signing this guarantee, you may become personally responsible instead of, or as well as, the debtor to pay the amounts which the debtor owes and the reasonable expenses of the credit provider in enforcing the guarantee.

                                                                                                                        * If the debtor does not pay you must pay. This could mean you lose everything you own including your home.
  * You should also read the information statement: 'THINGS YOU SHOULD KNOW ABOUT GUARANTEES'.
                                                                                                                        * You may be able to withdraw from this guarantee or limit your liability. Ask your legal adviser about this before you sign this guarantee.

  * You should obtain independent legal advice.                                                                         * You are not bound by a change to the credit contract, or by a new credit contract, that increases your liabilities under the guarantee unless you have agreed in writing and have been given written particulars of the change or a copy of the new credit contract document.

  * You should also consider obtaining independent financial advice.

  * You should make your own inquiries about the credit worthiness, financial position and honesty of the debtor.

Form 9—Information statement

section 56(1)(b) of the Code
regulation 82 of the Regulations

Things you should know about guarantees
  This information tells you about some of the rights and obligations of yourself and the credit provider. It does not state the terms and conditions of your guarantee.

Guarantees

 1 What is a guarantee?
  A promise by you that the person who is getting credit under a credit contract (the debtor) will keep to all the terms and conditions. If that person does not do so, you promise to pay the credit provider all the money owing on the contract (and any reasonable enforcement expenses) as soon as the money is asked for, up to the limit, if any, stated in the guarantee. If you do not pay, then the credit provider can take enforcement action against you which may result in the forced sale of any property owned by you such as your house.

 2 How do I know how much the debtor is borrowing and how the credit charges are worked out?
  These details are on the copy of the credit contract or proposed credit contract that you should be given before you sign the guarantee.

 3 What documents should I be given?
  Before you sign the guarantee you should get—
           * the document you are reading now; and
           * a copy of the credit contract