National Consumer Credit Protection Act 2009

SCHEDULE 1 - NATIONAL CREDIT CODE  

Note:

See section 3 of the National Credit Act.

PART 5 - ENDING AND ENFORCING CREDIT CONTRACTS, MORTGAGES AND GUARANTEES  

Division 2 - Enforcement of credit contracts, mortgages and guarantees  

90   Requirements to be met before credit provider can enforce guarantee against guarantor  

90(1)    
A credit provider must not, under a guarantee, enforce a judgment against a guarantor unless:

(a) the credit provider has obtained a judgment against the debtor for payment of the guaranteed liability and the judgment remains unsatisfied for 30 days after the credit provider has made a written demand for payment of the judgment debt; or

(b) the court has relieved the credit provider from the obligation to obtain a judgment against the debtor on the ground that recovery from the debtor is unlikely; or

(c) the credit provider has made reasonable attempts to locate the debtor but without success; or

(d) the debtor is insolvent.

Criminal penalty: 50 penalty units.

90(2)    
Subsection (1) is an offence of strict liability.

Note:

For strict liability, see section 6.1 of the Criminal Code .