EXPLANATORY
CREDIT
MEMORA}IDI.'M
t
st l1*x$ t
REGIJI,ATIONS
empowers the
Slction
226 oE the Credit, Act 1985 (the Act),
to prescribe
Minister,
Attorney-General
as the responsible
regulations
in accordance wit,h
or amend existing
regulations
of the Act
requirements
Lhe
Assembly passed the Registration
On 7 June 1990, b,he Legislative
In Goods Act 1990 (the Act), establishing
a
of Interests
scheme for ACT vehicle
registration
encumbrance information
(REVS), in bhe Territory.
commence
The REVS scheme will
operation on 30 June 1990.
an interest
Under REVS a credib provider
will
be able to register
purchasers of that
in a vehicle
as notice to prospective
to
interest.
A purchaser will
be able to search the register
whether a vehicle
ascertain
is encumbered at the time of
purchase.
REVS will
recording
will
also
verifying
providers
costs when
reguire
to incur additional
credit
I
n
a
d
d
i
t
i
o
n
,
r
e
g
i
s
t
e
r
.
they
o
n
t
h
e
their
interests
be required
to pay a fee to obtai.n a search certificate
the status of a vehicle.
The finance industry
has requested thab these amounb,s be included
Act.
as part of the amount financed in contracts
under the Credit
Section 35 (1) (a) of the CrediE Act provides that a credi.t sale
cont,ract relating
to goods and services must have a,statement of
(a term defined in sub-section
the "amount financed"
5 (1) of the
Act) in accordance wibh schedule 2 of the Act.
Section 36 (1)
(b) provides that a loan contract
have a statement
rnust similarly
of the amount financed in accordance with schedule 4 of the Act.
Both Schedules provide that the statement of the amount financed
shall state amounts Lhat are "prescribed
amounts".
The fees imposed by REVS are presently
not included under Lhe
Credit Act as prescribed
amounts and cannot be included as part
of the amount financed.
25 of bhe Credib.
Amendment to Regulation
Regulations as proposed in attachment A, will
allow fees imposed
for the cost of registration
and the cos'* of search certificates
to be included as part of the amounts financed in future credit
sale and credit
loan agreements under the Credit Act which
involve the purchase of mobor vehicle.
Regulation 25 would come
i n t o o p e r a t i o n b e f o r e t h e c o m m e n c e m e n to f R E V S o n 3 0 J u n e 19 9 0 .
New South !.fales and Victoria
credit
have already amended their
regulaEions
in similar
terms bo allow these fees and charges to
REVS schemes
be included
amounts at, the tirne their
as prescribed
commenced. ft is therefore
appropriaEe thaE, the ACT amend its
regul4tions
t o maintain uniformity.
Atborney-GeneraI
Authorised by the ACT Parliamentary Counsel–also accessible at www.legislation.act.gov.au