Document ID: chunk:federal_register_of_legislation:C2012A00130:clause:2_12
Version: federal_register_of_legislation:C2012A00130
Segment Type: clause
Provision Reference: sch 2 cl 12
Character Range: 53923–55163

12  After subsection 17(15) of the National Credit Code
Insert:

Provisions for person other than debtor to occupy reverse mortgaged property
 (15A) If the credit contract for a reverse mortgage is to make provision for a person other than the debtor to occupy the reverse mortgaged property, the contract document must contain provisions that have the following effect (whether or not the document also contains other provisions relating to such occupation by such a person):
 (a) the debtor may at any time (before, when or after the contract is made):
 (i) nominate to the credit provider a person who is to be allowed to occupy the property (whether alone or with other persons); and
 (ii) revoke such a nomination by notice given to the credit provider;
 (b) while a nomination described in paragraph (a) is in force, the nominated person has the same rights (against the credit provider) to occupy the property as the debtor has or would have apart from the death of the debtor or vacation of the property by the debtor.
Note: Other provisions contained in the contract document may, for example, limit the kinds of persons whom the debtor may nominate to the credit provider as persons who are to be allowed to occupy the property.