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.

<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>