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 1 - Ending of credit contract by debtor etc.  

Subdivision B - Ending of reverse mortgage by credit provider receiving value of reverse mortgaged property  

86A   Application of this Subdivision  

86A(1)    
This Subdivision applies in relation to a credit contract for a reverse mortgage and a mortgage securing the debtor ' s obligations under the contract if:

(a) the debtor ' s accrued liability (whether or not due and payable) under the contract is more than the amount (the adjusted market value ) worked out under subsection (2) for the reverse mortgaged property; and

(b) the credit provider receives an amount at least equal to the adjusted market value for the reverse mortgaged property either:

(i) as a payment accepted from the debtor under the credit contract; or

(ii) as proceeds of the sale by the credit provider of the reverse mortgaged property.

86A(2)    
The adjusted market value for the reverse mortgaged property is the amount worked out by:

(a) working out the market value of the property in accordance with the regulations (if any); and

(b) adjusting that value in accordance with the regulations (if any).

Regulations for the purposes of paragraph (b) may prescribe different adjustments to be made in different circumstances.