National Consumer Credit Protection Act 2009
SCHEDULE 1
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NATIONAL CREDIT CODE
A credit provider must not enter into a mortgage to secure obligations under a credit contract unless each mortgagor is a debtor under the contract or a guarantor under a related guarantee.
48(2)
A credit provider must not enter into a mortgage to secure obligations under a guarantee unless each mortgagor is a guarantor under the guarantee or a debtor under the related credit contract.
48(3)
A mortgage which does not comply with this section is unenforceable.
48(4)
The court may, on the application of a party to a mortgage that is unenforceable because of this section, order that the credit provider takes such steps as are necessary to discharge the mortgage.
48(5)
In this section, a reference to a credit contract or guarantee includes a reference to a proposed credit contract or proposed guarantee.
Note:
See section 3 of the National Credit Act.
PART 3 - RELATED MORTGAGES AND GUARANTEES Division 1 - Mortgages 48 Third party mortgages prohibited 48(1)A credit provider must not enter into a mortgage to secure obligations under a credit contract unless each mortgagor is a debtor under the contract or a guarantor under a related guarantee.
48(2)
A credit provider must not enter into a mortgage to secure obligations under a guarantee unless each mortgagor is a guarantor under the guarantee or a debtor under the related credit contract.
48(3)
A mortgage which does not comply with this section is unenforceable.
48(4)
The court may, on the application of a party to a mortgage that is unenforceable because of this section, order that the credit provider takes such steps as are necessary to discharge the mortgage.
48(5)
In this section, a reference to a credit contract or guarantee includes a reference to a proposed credit contract or proposed guarantee.
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