National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

PART 3 - RELATED MORTGAGES AND GUARANTEES  

Division 2 - Guarantees  

61   Increase in guarantor ' s liabilities  

61(1)    
If the terms of a credit contract are changed to increase or allow for an increase in liabilities, the liabilities of a guarantor under a guarantee that secures those liabilities are not increased unless:

(a) the credit provider gives to the guarantor a written notice setting out particulars of the change in the terms of the credit contract; and

(b) the credit provider has subsequently obtained from the guarantor a written acceptance of the extension of the guarantee to those increased liabilities or obtained acceptance in some other form provided for by the regulations.

61(2)    
This section does not apply to an increase in liabilities resulting from:

(a) a change of a kind referred to in paragraph 63(2)(a) or (b); or

(b) a change of which notice is required to be given under Division 1 of Part 4 (not being a change referred to in subsection 67(4) or section 68); or

(c) a change under subsection 74(2) or a postponement under subsection 96(2); or

(d) a deferral or waiver of a debtor ' s obligations for a period not exceeding 90 days.