Corporations Act 2001
Note: This Part applies to a sub-fund of a CCIV in a modified form: see Division 3 of Part 8B.6 (for provisions relating to Division 2B ), Division 5 of Part 8B.6 (for provisions relating to Divisions 2 and 2A ) and Division 6 of Part 8B.6 (for provisions relating to Divisions 3 , 4 , 5 and 6 ).
View history note
Hide history noteA loan to a company is unfair if, and only if: (a) the interest on the loan was extortionate when the loan was made, or has since become extortionate because of a variation; or (b) the charges in relation to the loan were extortionate when the loan was made, or have since become extortionate because of a variation;
even if the interest is, or the charges are, no longer extortionate.
588FD(2)
In determining: (a) whether interest on a loan was or became extortionate at a particular time as mentioned in paragraph (1)(a) ; or (b) whether charges in relation to a loan were or became extortionate at a particular time as mentioned in paragraph (1)(b) ;
regard is to be had to the following matters as at that time:
(c) the risk to which the lender was exposed; and (d) the value of any security in respect of the loan; and (e) the term of the loan; and (f) the schedule for payments of interest and charges and for repayments of principal; and (g) the amount of the loan; and (h) any other relevant matter.
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