51Exempt credit—maximum account charges

#### 51 Exempt credit—maximum account charges For the purposes of subsection 6(5) of the Code, for a continuing credit contract under which the only charge that is or may be made for providing credit: (a) is periodic or fixed; and (b) does not vary according to the amount of credit provided; the prescribed maximum charge for the contract (the eligible contract) is as follows. ```html <table cellspacing="0" cellpadding="0" style="margin-left:0.25pt; border-collapse:collapse"><thead><tr><td colspan="3" style="width:404.8pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Prescribed maximum charge</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Item</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>If:</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="TableHeading"><span>Then the prescribed maximum charge is:</span></p></td></tr></thead><tbody><tr><td style="width:24.9pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>1</span></p></td><td style="width:179.15pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>the debtor is not already a party to an eligible contract with the credit provider, or with an associate of the credit provider, when the eligible contract is entered into</span></p></td><td style="width:179.15pt; border-top:1.5pt solid #000000; border-bottom:0.75pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) for the 12</span><span>‑</span><span>month period commencing when the debtor enters into the eligible contract—$200; and</span></p><p class="Tablea"><span>(b) for any later 12</span><span>‑</span><span>month period during which the eligible contract is in effect—$125</span></p></td></tr><tr><td style="width:24.9pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>2</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tabletext"><span>when the eligible contract (the </span><span style="font-weight:bold; font-style:italic">new eligible contract</span><span>) is entered into:</span></p><p class="Tablea"><span>(a) the debtor:</span></p><p class="Tablei"><span>(i) is already; or</span></p><p class="Tablei"><span>(ii) was within the previous 12 months;</span></p><p class="Tablea"><span style="width:14.2pt; text-indent:0pt; display:inline-block"></span><span>a party to an eligible contract with the credit provider or with an associate of the credit provider; and</span></p><p class="Tablea"><span>(b) neither the credit provider nor the associate of the credit provider is an ADI</span></p></td><td style="width:179.15pt; border-top:0.75pt solid #000000; border-bottom:1.5pt solid #000000; padding-right:5.4pt; padding-left:5.4pt; vertical-align:top"><p class="Tablea"><span>(a) for the 12</span><span>‑</span><span>month period commencing when the debtor enters into the new eligible contract—nil; and</span></p><p class="Tablea"><span>(b) for any later 12</span><span>‑</span><span>month period during which the new eligible credit contract is in effect—nil</span></p></td></tr></tbody></table> ``` > Note: Under subsection 6(5) of the Code, the Code does not apply to the provision of credit under an eligible contract unless the only charge that is or may be made for providing credit under the contract exceeds the maximum charge prescribed by this regulation.