A c t N o . 24, 1905.
An
B
A c t t o r e g u l a t e t h e b u s i n e s s of m o n e y ­
lenders, and to render penal t h e inciting
i n f a n t s t o b o r r o w i n g m o n e y , a n d for o t h e r
p u r p o s e s , [loth November, 1905.]
E it e n a c t e d by t h e K i n g ' s M o s t E x c e l l e n t Majesty, by a n d with
t h e advice a n d consent of t h e Legislative Council a n d Legislative
A s s e m b l y of N e w S o u t h W a l e s in P a r l i a m e n t assembled, a n d by t h e
a u t h o r i t y of t h e same, as follows :—
1. (1) AA'here proceedings arc t a k e n in a n y c o u r t b y a m o n e y ­
lender for t h e recovery of a n y m o n e y lent after t h e p a s s i n g of this
Act, or t h e e n f o r c e m e n t of a n y a g r e e m e n t or security m a d e or t a k e n
after t h e passing of t h i s A c t , i n respect of m o n e y l e n t either before or
after t h e p a s s i n g of this Act, a n d t h e r e is evidence w h i c h satisfies t h e
court—
(1) t h a t t h e t r a n s a c t i o n is such t h a t a Court of E q u i t y w o u l d
g r a n t relief; or
(2) t h a t t h e interest c h a r g e d in respect of t h e s u m actually l e n t
is excessive; or
(3) t h a t t h e a m o u n t s c h a r g e d for expenses, lines, b o n u s , p r e m i u m s ,
renewals, or any o t h e r c h a r g e s , a r e excessive, a n d t h a t in
either of such last t w o cases t h e t r a n s a c t i o n is h a r s h a n d
u n c o n s c i o n a b l e in its n a t u r e ,
the c o u r t m a y reopen t h e transaction, a n d t a k e or direct to be t a k e n
a n a c c o u n t b e t w e e n t h e m o n e y - l e n d e r a n d t h e person sued, a n d m a y ,
n o t w i t h s t a n d i n g a n y s t a t e m e n t or s e t t l e m e n t of a c c o u n t , or a n y agree­
m e n t p u r p o r t i n g to close p r e v i o u s dealings a n d create a new obligation,
r e o p e n a n y a c c o u n t a l r e a d y t a k e n b e t w e e n t h e m , a n d relieve t h e
person sued from p a y m e n t of a n y s u m in excess of t h e s u m found to be
fairly d u e in respect of such p r i n c i p a l , interest, a n d charges as, h a v i n g
r e g a r d to t h e risk a n d all t h e c i r c u m s t a n c e s , m a y be found to be
r e a s o n a b l e ; a n d if a n y such excess has been paid, or allowed in
a c c o u n t , by t h e debtor, m a y order t h e creditor to repay i t ; a n d m a y
set aside, e i t h e r wholly or in p a r t , or revise or alter, a n y s e c u r i t y
given or a g r e e m e n t m a d e in respect of m o n e y l e n t by t h e m o n e y ­
lender, a n d if t h e m o n e y - l e n d e r has p a r t e d w i t h t h e security m a y
order h i m to indemnify the borrower or o t h e r person sued.
(2) A n y court in which proceedings m i g h t be t a k e n for t h e
recovery of m o n e y l e n t by a m o n e y - l e n d e r shall have a n d m a y exercise
a t t h e instance of t h e borrower or surety or o t h e r person liable t h e
like powers as m a y be exercised u n d e r t h i s section w h e r e p r o c e e d i n g s
are
are t a k e n for t h e recovery of m o n e y lent ; and t h e court shall h a v e
power, n o t w i t h s t a n d i n g a n y provision or a g r e e m e n t to t h e c o n t r a r y , to
e n t e r t a i n a n y application u n d e r this .Vet by t h e borrower or s u r e t y , or
o t h e r person liable, n o t w i t h s t a n d i n g t h a t t h e t i m e for r e p a y m e n t of
t h e loan or a n y i n s t a l m e n t thereof m a y n o t h a v e arrived.
(3) On a n y application r e l a t i n g to t h e admission or a m o u n t
of a proof b y a m o n e y - l e n d e r in a n y b a n k r u p t c y proceedings, t h e
c o u r t m a y exercise t h e like powers as may be exercised u n d e r t h i s
section w h e n proceedings are t a k e n for t h e recovery of m o n e y .
(4) T h e foregoing provisions of this section shall a p p l y to
a n y t r a n s a c t i o n w h i c h , w h a t e v e r its form m a y be, is s u b s t a n t i a l l y one
of m o n e y - l e n d i n g by a m o n e y - l e n d e r .
(5) N o t h i n g in t h e foregoing provisions of t h i s section s h a l l
affect t h e r i g h t s of a n y bona-tide assignee or holder for value w i t h o u t
notice.
((>) N o t h i n g in. this section shall be c o n s t r u e d as d e r o g a t i n g
from t h e e x i s t i n g powers or jurisdiction of a n y court.
(7) F o r t h e purposes of this section all s u c h orders m a y be
m a d e a n d directions given by t h e court as it m a y d e e m necessary or
p r o p e r for t h e effectual c a r r y i n g out of t h e provisions t h e r e i n c o n t a i n e d .
2. (1) A money-lender, as defined by this A c t , —
(a) shall register himself as a m o n e y - l e n d e r in accordance w i t h
r e g u l a t i o n s u n d e r this Act at a n office provided for t h e
purpose by t h e R e g i s t r a r G e n e r a l u n d e r his own or u s u a l
t r a d e n a m e , and in no o t h e r n a m e , a n d w i t h t h e address, or
all t h e addresses, if m o r e t h a n one, at which h e carries o n his
business of m o n e y - l e n d e r ; a n d
(b) shall carry on t h e m o n e y - l e n d i n g business in his registered
n a m e , a n d in no o t h e r n a m e a n d u n d e r n o o t h e r description,
a n d at his registered address or addresses, a n d a t no o t h e r
address ; a n d
(c) shall n o t e n t e r i n t o any a g r e e m e n t in t h e course of his
business as a money-lender w i t h respect to t h e a d v a n c e a n d
r e p a y m e n t of m o n e y , or t a k e a n y security for m o n e y i n t h e
course of his business as a money-lender otherwise t h a n i n
his registered n a m e ; and
(d) shall on reasonable r e q u e s t , and on tender of a reasonable
s u m for expenses, furnish t h e borrower w i t h a copy of a n y
d o c u m e n t r e l a t i n g to t h e loan or a n y security therefor.
(2) If a m o n e y - l e n d e r fails to register himself as r e q u i r e d
b y t h i s A c t , or carries on business otherwise t h a n in his registered n a m e ,
or in m o r e t h a n one n a m e , or clseAvhero t h a n at his registered address,
or fails to c o m p l y with a n y o t h e r r e q u i r e m e n t of this section, h e shall
be liable on s u m m a r y conviction to a line not exceeding one h u n d r e d
p o u n d s , a n d in t h e case of a second or s u b s e q u e n t conviction to
imprisonment,
i m p r i s o n m e n t , with or without h a r d labour, for a t e r m not exceeding
t h r e e m o n t h s , or to a fine n o t exceeding one h u n d r e d p o u n d s , or to
both:
P r o v i d e d t h a t if t h e offender be a body corporate or a
c o m p a n y , t h a t body corporate or c o m p a n y shall be liable on a second or
s u b s e q u e n t conviction to a tine n o t e x c e e d i n g live h u n d r e d p o u n d s .
(3) A p r o s e c u t i o n u n d e r subsection (1) (a) of this section
shall not be i n s t i t u t e d except with t h e consent of t h e A t t o r n e y General .
3. (1) T h e R e g i s t r a r G e n e r a l , subject to t h e approval of t h e
Governor, m a y m a k e r e g u l a t i o n s r e s p e c t i n g t h e r e g i s t r a t i o n of m o n e y ­
lenders, w h e t h e r individuals, firms, societies, or c o m p a n i e s , t h e form
of t h e register, and t h e p a r t i c u l a r s to be e n t e r e d t h e r e i n , a n d t h e fees
to be paid on registration and renewal of registration not e x c e e d i n g
one p o u n d for each registration or renewal, a n d r e s p e c t i n g t h e
inspection of t h e register a n d t h e fees p a y a b l e therefor.
(2) The registration shall cease to h a v e effect at t h e e x p i r a t i o n
of t h r e e years from t h e date of t h e registration, b u t m a y b e r e n e w e d
from t i m e to time, a n d if r e n e w e d shall h a v e effect for t h r e e years from
t h e date of t h e r e n e w a l .
4 . If a n y m o n e y - l e n d e r , or a n y m a n a g e r , a g e n t , or clerk of
a m o n e y - l e n d e r , or if a n y person b e i n g a director, m a n a g e r , or o t h e r
officer of a n y corporation or c o m p a n y c a r r y i n g on t h e business of
a m o n e y - l e n d e r , by a n y false, misleading, or deceptive s t a t e m e n t ,
r e p r e s e n t a t i o n , or promise, or by a n y dishonest c o n c e a l m e n t of m a t e r i a l
facts, f r a u d u l e n t l y induces or a t t e m p t s to i n d u c e a n y person to borrow
m o n e y or to agree to the t e r m s on w h i c h money is or is to be borrowed,
he shall be g u i l t y of m i s d e m e a n o u r , a n d shall be liable on i n d i c t m e n t
to i m p r i s o n m e n t , w i t h or w i t h o u t h a r d l a b o u r , for a t e r m n o t exceeding
t w o years, or to a fine not exceeding five h u n d r e d p o u n d s , or to b o t h .
5. (1) If a n y o n e , for t h e p u r p o s e of e a r n i n g interest, c o m m i s ­
sion, r e w a r d , or o t h e r profit, sends or causes to be sent to a person
who is a n i n f a n t a n y circular, notice, a d v e r t i s e m e n t , letter, t e l e g r a m ,
or o t h e r d o c u m e n t w h i c h invites, or m a y reasonably be implied to
i n v i t e , t h e person receiving it to b o r r o w m o n e y , or to enter into a n y
t r a n s a c t i o n involving t h e b o r r o w i n g of m o n e y , or to apply to a n y
2>erson or at a n y place with a view to o b t a i n i n g information or advice
as to b o r r o w i n g money, he shall be g u i l t y of a m i s d e m e a n o u r , a n d
shall be liable, if convicted on i n d i c t m e n t , to i m p r i s o n m e n t , with or
w i t h o u t h a r d labour, for a t e r m not e x c e e d i n g t h r e e m o n t h s , or to a
fine n o t e x c e e d i n g one h u n d r e d p o u n d s , or to b o t h i m p r i s o n m e n t a n d
fine, and if convicted on s u m m a r y conviction, to i m p r i s o n m e n t , w i t h
or w i t h o u t h a r d l a b o u r , for a t e r m not exceeding one m o n t h , or to a
fine n o t e x c e e d i n g t w e n t y pounds, or to both i m p r i s o n m e n t a n d fine.
(2) I f a n y s u c h d o c u m e n t as above in this section m e n t i o n e d
sent to a n i n f a n t p u r p o r t s to issue from a n y address n a m e d t h e r e i n , or
indicates
i n d i c a t e s a n y address as t h e place a t w h i c h application is to he m a d e
as to t h e subject m a t t e r of t h e d o c u m e n t , a n d at t h a t place t h e r e is
carried on a n y business connected w i t h loans, w h e t h e r m a k i n g or
p r o c u r i n g loans or o t h e r w i s e , every person w h o a t t e n d s a t s u c h place
for t h e p u r p o s e of t a k i n g p a r t in, or w h o takes p a r t in or assists in t h e
c a r r y i n g on of such business, shall be d e e m e d to have sent or caused to
be sent s u c h d o c u m e n t as aforesaid, unless he proves t h a t b e was not
in a n y way a party to a n d was wholly i g n o r a n t of t h e s e n d i n g of
such document.
(3) "Where in a n y proceedings u n d e r this section it is proved
t h a i t h e person to w h o m t h e d o c u m e n t was sent was a n infant, the
p e r s o n c h a r g e d shall be deemed to have k n o w n t h a t t h e person to
w h o m t h e d o c u m e n t was sent was a n infant, unless h e proves t h a t lie
b a d reasonable g r o u n d for believing t h e i n f a n t t o be of full age.
6. If a n y o n e , e x c e p t u n d e r t h e a u t h o r i t y of a n y court, solicits
an infant to m a k e an affidavit or s t a t u t o r y declaration for t h e p u r p o s e
of or i n c o n n e c t i o n w i t h a n y loan, h e shall be liable, if convicted on
s u m m a r y conviction, to i m p r i s o n m e n t w i t h or w i t h o u t h a r d l a b o u r for a
t e r m not e x c e e d i n g one m o n t h , or to a line not exceeding t w e n t y p o u n d s ,
or to b o t h i m p r i s o n m e n t a n d line, a n d if convicted on i n d i c t m e n t , to
i m p r i s o n m e n t , with or w i t h o u t h a r d labour, for a t e r m n o t exceeding
t h r e e m o n t h s , or to a line not exceeding one h u n d r e d p o u n d s .
7. if a n y infant, who h a s c o n t r a c t e d a loan w h i c h is void or
voidable in law, agrees after he comes of age to pay a n y m o n e y which
iii whole or in part r e p r e s e n t s or is agreed to be paid in respect of
any such loan, and is not a new advance, such a g r e e m e n t a n d a n y
i n s t r u m e n t , negotiable or other, given in p u r s u a n c e of or for c a r r y i n g
into effect such a g r e e m e n t or otherwise in relation to t h e p a y m e n t of
m o n e y r e p r e s e n t i n g or in respect of such loan shall, so far as it
relates to money which represents or is payable; in. respect of such
loan, a n d is not a new a d v a n c e , be void absolutely as against all
persons w h o m s o f v e r .
8. T h e expression • • ' m o n e y - l e n d e r " in t h i s A c t shall include
every person or c o m p a n y whose business is t h a t of m o n e y - l e n d i n g , or
w h o advertises or a n n o u n c e s himself or holds himself o u t in a n y way
as c a r r y i n g on t h a t business, h u t shall n o t i n c l u d e —
(a) any p a w n b r o k e r in respect of business carried on b y him in
accordance w i t h t h e provisions of t h e A c t s for the t i m e b e i n g
in force in relation to p a w n b r o k e r s ; or
(b) any registered society w i t h i n t h e m e a n i n g of t h e i V i e n d l y
Societies A c t of 1873 or 1809, or a n y society registered or
h a v i n g rules certified u n d e r either of t h o s e A c t s ; or
(c) a n y body corporate, i n c o r p o r a t e d or e m p o w e r e d b y a special
A c t of P a r l i a m e n t , to lend m o n e y i n accordance w i t h such
special A c t ; or
(d)
(d) a n y person or c o m p a n y b o n a fide c a r r y i n g on t h e business of
b a n k i n g or i n s u r a n c e , or bona fide c a r r y i n g on a n y business
n o t h a v i n g for its p r i m a r y object t h e l e n d i n g of m o n e y , in
t h e course of w h i c h a n d for t h e p u r p o s e whereof m o n e y is l e n t .
9. T h i s A c t m a v be cited as t h e " M o n e y - l e n d e r s a n d I n f a n t s
Loans Act, 1905."