National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

PART 3 - RELATED MORTGAGES AND GUARANTEES  

Division 1 - Mortgages  

47   All accounts mortgages  

47(1)    
In addition to securing credit provided by the credit contract or proposed credit contract, or securing obligations under a related guarantee or proposed related guarantee, to which a mortgage initially applies, the mortgage may contain a provision that secures credit provided under another future credit contract or future related guarantee.

47(2)    
Any such mortgage is unenforceable in relation to such a future credit contract or future related guarantee unless the credit provider has:

(a) given the mortgagor a copy of the contract document of the credit contract or proposed credit contract or a copy of the guarantee or proposed guarantee to which the mortgage is to relate; and

(b) subsequently obtained from the mortgagor a written acceptance of the extension of the mortgage or obtained acceptance in some other form provided for by the regulations.

47(3)    
Section 42 (Form of mortgage) does not apply to an extension of a mortgage under this section.