Index

Updates and background for this project (Digest)

codes of practice ... 8.11-8.13
Commission’s recommendation ... 8.32-8.38, R 8.1
common law ... 8.7, 8.8
Consumer Credit Code ... 8.9
definition ... 8.4-8.6

empirical background ... 12.2-12.4
industry-based dispute resolution schemes ... 12.34
Banking and Financial Services Ombudsman ... 12.35-12.37
Commission’s conclusions ... 12.41-12.44
Credit Union Dispute Resolution Centre ... 12.38-12.40
mediation ... 12.24-12.32
Commission’s conclusion ... 12.33
negotiation ... 12.5
Commission’s recommendation ... 12.13-12.16, R 12.1
court-ordered postponement ... 12.10-12.12
postponement by parties ... 12.6-12.9
tribunal proceedings ... 12.17-12.22
Commission’s recommendation ... 12.23, R 12.2

by agreement between lender and borrower ... 9.41-9.45, R 9.6
common law ... 9.30, 9.31
increase in liabilities ... 9.35-9.40, R 9.5
unilateral action by lender ... 9.46-9.48, R 9.7

age ... 4.9
family relationships ... 4.7
gender ... 4.8
lack of information ... 4.25
language background ... 4.10
literacy ... 4.11

Commission’s recommendation ... 8.53, R 8.2
common law ... 8.39-8.43, 8.50-8.52
Consumer Credit Code ... 8.42

Canada ... 3.41-3.43, 3.74-3.76
European Union ... 3.53-3.73
Germany ... 3.10-3.13
New Zealand ... 3.44-3.48, 3.77-3.79
Roman law ... 3.3-3.8
United States ... 3.14-3.40

Commission’s recommendation ... 8.66, 8.67, R 8.3
current law ... 8.54-8.65

Cooling off

post-contract ... 9.2-9.12, R 9.1
pre-contract ... 6.104, 6.106, R 6.6, R 6.7

corporations and other artificial persons ... 5.30, R 5.4
directors ... 5.31-5.36, R 5.5

See Enforcement expenses

Default by borrower

notice to guarantor
Commission’s recommendation ... 10.15, R 10.2
common law ... 10.11, 10.13, 10.14
industry codes of practice ... 10.12
pursuing the borrower before the guarantor
Commission’s recommendation ... 10.27-10.36, R 10.4
common law ... 10.22, 10.23
Consumer Credit Code ... 10.23-10.25
industry codes of practice ... 10.26
remedy by guarantor ... 10.20, R 10.3

credit contract ... 5.2-5.4, R 5.1
guarantee ... 1.3-1.6
indemnity ... 5.37
small business
see Small business
third party mortgage ... 5.44

post-contract
borrower’s default ... 9.29
empirical background ... 9.13-9.15
obligations and liabilities ... 9.16-9.19, R 9.2, R 9.3
Privacy Act 1988 (Cth) ... .9.30, 9.31
status of the guaranteed loan ... 9.20-9.28, R 9.4
pre-contract
Code of Banking Practice ... 6.88-6.11
Commission’s recommendation ... 6.40-6.47, R 6.1-6.3
common law ... 6.3, 6.4
Consumer Credit Code ... 6.5, 6.6
Privacy Act 1988 (Cth) ... 6.14-6.29

grounds
duress ... 2.16
misrepresentation ... 2.16
mistake ... 2.16
non est factum ... 2.16
special equity for wives ... 2.12-2.15
statutes ... 2.19-2.34
unconscionability ... 2.5-2.7
remedies ... 2.25-2.29
see also Alternative dispute resolutions and Unjust contracts

default
see Default by borrower
expenses
Commission’s recommendation ... 10.51, R 10.5
empirical background ... 10.37
excessive ... 10.49, 10.50
lender’s internal costs ... 10.44-10.46
meaning ... 10.42, 10.43
reasonably incurred and reasonable amount ... 10.47, 10.48

restriction on use ... 4.37-4.41
homestead laws ... 3.28-3.51

legibility and plain English ... 7.13-7.32, R 7.2
written ... 7.8-7.11, R.7.1

Indemnity ... 5.37-5.43, R 5.6

Independent advice

Code of Banking Practice ... 6.54, 6.55
Commission’s recommendations ... 6.100-6.103, R 6.4, R 6.7
Consumer Credit Code ... 6.52, 6.53
empirical background ... 6.79-6.93
functions ... 6.48
Solicitors Practice Rules ... 6.56, 6.57, 6.87, 6.88

all moneys clauses ... 8.8
guarantees in general ... 2.3

Signing of guarantee documents

empirical background ... 6.109, 6.110
Commission’s recommendation ... 6.11, 6.13, R 6.8

definition
Australian Bureau of Statistics ... 5.21-5.21
Code of Banking Practice ... 5.19
Commission’s recommendation ... 5.27, R 5.3

Termination by early repayment

Commission’s recommendation ... 10.10, R 10.1
common law ... 10.2
Consumer Credit Code ... 10.3-10.8
industry code of practice ... 10.3-10.8

Unconscionability ... 2.5-2.7

Unjust contacts

common law
see Disputing guarantee contracts
Model Law provisions
factors to be considered by the court
age, physical or mental condition ... 11.38, 11.39, R 11.6
all the circumstances of the case ... 11.23, 11.24, R 11.5
capacity to satisfy the debt ... 11.52-11.54, R 11.6
comparable guarantee transactions ... 11.56-11.59, R 11.6
compliance with Model Law provisions ... 11.69-11.72, R 11.6
consequence of compliance or non-compliance ... 11.30, R 11.6
economic, educational, etc background ... 11.63, 11.64, R 11.6
explanation and understanding ... 11.44-11.46, R 11.6
form and intelligibility of contract ... 11.40, R 11.6
guarantor’s capacity to negotiate ... 11.36, R 11.6
independent advice ... 11.41-11.43, R 11.6
interrelated arrangements ... 11.8, 11.9, R 11.4
justification of contractual terms ... 11.55, R 11.6
other relevant factors ... 11.60, 11.61, R 11.6
post-contract conduct ... 11.84, 11.85, R 11.9
prior negotiations of contractual terms ... 11.31, 11.32, R 11.6
public interest ... 11.21, 11.22, R 11.5
reasonably foreseeable circumstances ... 11.16, 11.17, R 11.3
relative bargaining power ... 11.31, 11.32, R 11.6
relevant industry codes ... 11.67, 11.68, R 11.6
setting, purpose and effect of guarantee ... 11.65, 11.66, R 11.6
understanding implications of guarantee ... 11.49-11.51, R 11.6
unfair pressure or tactics, undue influence ... 11.47, 11.48, R 11.6
unreasonable or unnecessary contractual provisions ... 11.37, R 11.6
reliefs ... 11.73-11.83, R 11.7, R 11.8
timeframe of unjustness ... 11.14-11.15, R 11.2
unjust defined ... 11.1-11.13, R 11.1
statutes ... 2.19-2.34 ...