Document ID: chunk:federal_register_of_legislation:C2025C00185:section:588fd
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 588FD
Character Range: 1981966–1983014

588FD  Meaning of unfair loan
 (1) A loan to a company is unfair if, and only if:
 (a) the interest on the loan was extortionate when the loan was made, or has since become extortionate because of a variation; or
 (b) the charges in relation to the loan were extortionate when the loan was made, or have since become extortionate because of a variation;
even if the interest is, or the charges are, no longer extortionate.
 (2) In determining:
 (a) whether interest on a loan was or became extortionate at a particular time as mentioned in paragraph (1)(a); or
 (b) whether charges in relation to a loan were or became extortionate at a particular time as mentioned in paragraph (1)(b);
regard is to be had to the following matters as at that time:
 (c) the risk to which the lender was exposed; and
 (d) the value of any security in respect of the loan; and
 (e) the term of the loan; and
 (f) the schedule for payments of interest and charges and for repayments of principal; and
 (g) the amount of the loan; and
 (h) any other relevant matter.