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Legal Profession Act 2006
369Definitions—pt 3.5
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369 Definitions—pt 3.5
approved policy of fidelity insurance—see section 373 (2) (Solicitor
to have fidelity cover for regulated mortgages).
ASIC exemption means an exemption from the Corporations Act
given by the Australian Securities and Investments Commission
under that Act.
associate, of a solicitor, means—
(a) a partner of the solicitor, whether or not the partner is a solicitor;
or
(b) an employee or agent of the solicitor; or
(c) a corporation, or a member of a corporation, partnership,
syndicate or joint venture, in which the solicitor or a person
mentioned in paragraph (a) or (b) has a beneficial interest; or
(d) a co-trustee with the solicitor; or
(e) a person who is in a prescribed relationship to the solicitor or to
a person mentioned in paragraph (a), (b), (c) or (d).
borrower means a person who borrows from a lender or contributor
money that is secured by a mortgage.
Preliminary—pt 3.5 Division 3.5.1
client, of a solicitor, means a person who—
(a) receives the solicitor’s advice about investment in a regulated
mortgage or managed investment scheme; or
(b) gives the solicitor instructions to use money for a regulated
mortgage or managed investment scheme.
contributor means a person who lends, or proposes to lend, money
that is secured by a contributory mortgage arranged by a solicitor.
contributory mortgage means a mortgage to secure money lent by 2
or more contributors as tenants in common or joint tenants, whether
or not the mortgagee is someone who holds the mortgage in trust for
the contributors.
financial institution means—
(a) an ADI; or
(b) a friendly society under the Life Insurance Act 1995 (Cwlth); or
(c) a trustee company under the Trustee Companies Act 1947; or
(d) a property trust or other corporation established by or in relation
to a church that may invest money in accordance with an Act;
or
(e) an entity prescribed by regulation for this definition.
lender means a person who lends, or proposes to lend, a borrower
money that is secured by a mortgage.
member, of a managed investment scheme—see the Corporations
Act, section 9.
prescribed relationship—a person is in a prescribed relationship to
another person if the relationship is that of—
(a) a domestic partner; or
(b) a child, grandchild, brother, sister, parent or grandparent
(whether derived through a domestic partner or otherwise); or
(c) a kind prescribed by regulation for this subsection.
Note For the meaning of domestic partner, see the Legislation Act, s 169.
regulated mortgage means a mortgage (including a contributory
mortgage) other than—
(a) a mortgage under which the lender is a financial institution; or
(b) a mortgage under which the lender or contributors nominate the
borrower, but only if the borrower is not a person introduced to
the lender or contributors by the solicitor who acts for the lender
or contributors or by—
(i) an associate of the solicitor; or
(ii) an agent of the solicitor; or
(iii) a person engaged by the solicitor to introduce the borrower
to the lender or contributors; or
(c) a mortgage prescribed by regulation as exempt from this
responsible entity—see the Corporations Act, section 9.
run-out mortgage means a regulated mortgage entered into before 10
September 2002 that is not—
(a) a territory regulated mortgage; or
(b) a mortgage that forms part of a managed investment scheme that
is required to be operated by a responsible entity under the
Corporations Act (as modified by any ASIC exemption or the
regulations under that Act).
territory regulated mortgage—a regulated mortgage is a territory
regulated mortgage in relation to a solicitor if—
(a) the solicitor’s practice is a territory regulated mortgage practice;
and
(b) the regulated mortgage does not form part of a managed
investment scheme or, if it does form part of a managed
investment scheme, the managed investment scheme is not
required to be operated by a responsible entity under the
Corporations Act (as modified by any ASIC exemption or a
regulation under that Act).
territory regulated mortgage practice means a solicitor’s practice for
which a nomination under section 371 (Nomination of practice as
territory regulated mortgage practice) is in force.