Div 5Hire Purchase Agreements.

Division 5.—Hire Purchase Agreements.

Form of security for advance under hire purchase agreement.

164. A security for an advance by way of sale of chattels upon hire purchase may be in Form D in the Schedule.

Obligations under hire purchase agreement.

165. Unless it is otherwise specifically provided in the agreement, a hire purchase agreement in Form D imposes upon the hirer—

(a) an obligation to pay to the Commission the full amount of hire payable under the agreement at the times and at the place and in the manner fixed by the agreement;

(b) an obligation not to sell, dispose of, mortgage or part with the possession of the chattels or any of them or remove them or any of them from the premises where they are situated as stated in the agreement;

(c) an obligation to keep the chattels in the hirer’s own custody and to keep them in good and substantial repair and to preserve them from damage, destruction or deterioration;

(d) an obligation to duly and promptly pay and discharge and keep paid and discharged all rents, rates, taxes and outgoings of whatsoever kind payable or chargeable upon or in respect of the chattels and the premises where the chattels or any of them are situated and to produce and hand over receipts evidencing such payment whenever required so to do by the Commission;

(e) an obligation to insure and keep insured the chattels against fire in the joint name of the Commission and of the hirer in an office approved by the Commission for that purpose for the full value of the chattels stated in the agreement;

(f) an obligation to pay and whenever required by the Commission so to do to produce and hand over to the Commission receipts evidencing payment of all premiums necessary to keep such insurance of the chattels in full force and virtue; and

(g) an obligation to permit any officer of the Department to enter the premises where the chattels are situated at all reasonable times and inspect the chattels.

Rights of Commission under hire purchase agreement.

166. (1) A Hire Purchase Agreement in Form D confers upon the Commission the right to recover from the hirer in any Court of competent jurisdiction any arrears of hire due under the agreement.

(2) Whenever any obligation of a hirer under a Hire Purchase Agreement in Form D is not complied with the Commission may by its officers or agents enter, if necessary by force, the premises of the hirer or any other premises where the chattels or any of them may or may be reasonably suspected to be and take possession of and remove the chattels.

(3) If the hirer fails to comply with an obligation under the agreement to insure and keep insured the chattels, the Commission may insure and keep insured the chattels, and the cost of such insurance shall be added to the amount due by the hirer for hire under the agreement and for all purposes of the agreement and these Regulations be deemed to be included in the word “hire.”