Consumer Credit Legislation Amendment (Enhancements) Act 2012 (130 of 2012)

Schedule 5   Consumer leases

National Consumer Credit Protection Act 2009

25   Subsection 204(1) of the National Credit Code (definition of acceleration clause)

Repeal the definition, substitute:

acceleration clause means:

(a) in relation to a credit contract or mortgage - a term of a credit contract or mortgage providing that:

(i) on the occurrence or non-occurrence of a particular event, the credit provider becomes entitled to immediate payment of all, or a part, of an amount under the contract that would not otherwise have been immediately payable; or

(ii) whether or not on the occurrence or non-occurrence of a particular event, the credit provider has a discretion to require repayment of the amount of credit otherwise than by repayments fixed, or determined on a basis stated, in the contract;

but does not include any such term in a credit contract or mortgage that is an on demand facility; or

(b) in relation to a consumer lease - a term of a consumer lease providing that:

(i) on the occurrence or non-occurrence of a particular event, the lessor becomes entitled to immediate payment of all, or a part, of an amount under the lease that would not otherwise have been immediately payable; or

(ii) whether or not on the occurrence or non-occurrence of a particular event, the lessor has a discretion to require payment of an amount payable under a lease otherwise than by repayments fixed, or determined on a basis stated, in the lease.