Document ID: chunk:federal_register_of_legislation:F2024C01150:reg:2b:p1
Version: federal_register_of_legislation:F2024C01150
Segment Type: reg
Provision Reference: reg 2B (pt 1/2)
Character Range: 8887–11532

2B  Financial products: credit facility
 (1) For paragraph 12BAA(7)(k) of the Act, each of the following is a credit facility:
 (a) the provision of credit:
 (i) for any period; and
 (ii) with or without prior agreement between the credit provider and the debtor; and
 (iii) whether or not both credit and debit facilities are available;
 (b) a facility:
 (i) known as a bill facility; and
 (ii) under which a credit provider provides credit by accepting, drawing, discounting or indorsing a bill of exchange or promissory note;
 (c) the provision of credit by a pawnbroker in the ordinary course of a pawnbroker's business (being a business which is being lawfully conducted by the pawnbroker);
 (d) the provision of credit by the trustee of the estate of a deceased person by way of an advance to a beneficiary or prospective beneficiary of the estate;
 (e) the provision of credit by an employer, or a related body corporate of an employer, to an employee or former employee (whether or not it is provided to the employee or former employee with another person);
 (f) the provision of a mortgage that secures obligations under a credit contract (other than a lien or charge arising by operation of any law or by custom);
 (g) a guarantee related to a mortgage mentioned in paragraph (f);
 (h) a guarantee of obligations under a credit contract;
 (i) a facility for making non‑cash payments if payments made using the facility will all be debited to a facility mentioned in paragraphs (a) to (h).
 (2) The provision of consumer credit insurance that includes a contract of general insurance for the Insurance Contracts Act 1984 is not a credit facility.
 (3) In this regulation:
credit means a contract, arrangement or understanding:
 (a) under which:
 (i) payment of a debt owed by one person (a debtor) to another person (a credit provider) is deferred; or
 (ii) one person (a debtor) incurs a deferred debt to another person (a credit provider); and
 (b) including any of the following:
 (i) any form of financial accommodation;
 (ii) a hire purchase agreement;
 (iii) credit provided for the purchase of goods or services;
 (iv) a contract, arrangement or understanding for the hire, lease or rental of goods or services, other than a contract, arrangement or understanding under which:
 (A) full payment is made before or when the goods or services are provided; and
 (B) for the hire, lease or rental of goods—an amount at least equal to the value of the goods is paid as a deposit in relation to the return of the goods;
 (v) an article known as a credit card or charge card;
 (vi) an article, other than a credit card or a charge card,