55Partnership loans—exemption from certain provisions of Code

#### 55 Partnership loans—exemption from certain provisions of Code (1) The Code, other than: (a) Part 1; and (b) Division 3 of Part 4; and (c) Divisions 4 and 5 of Part 5; and (d) Part 7; does not apply to a contract to the extent that the contract provides for the provision of credit by a firm, or by a related body corporate of the firm, to a partner of the firm, whether or not the credit is provided to the partner with another person. (2) However, for a credit provider who provides credit in the course of a business of providing credit to which the Code applies to partners of a firm and to others, this regulation applies only to the provision of credit on terms that are more favourable to the debtor than the terms on which the credit provider provides credit to which the Code applies to persons who are not partners of the firm. (3) In this regulation: (a) a partner of a firm includes a former partner of a firm and an employee or former employee of the firm; and (b) a related body corporate of a firm is a body corporate that is ultimately wholly owned by all or some of the partners of the firm or by other persons on their behalf. > Note: Section 203B of the Code provides, among other things, that the regulations may exempt a contract or a class of contracts from all or specified provisions of the Code.