5Buy-back contracts regarded as pledge and loan

#### 5 Buy-back contracts regarded as pledge and loan 5 Buy-back contracts regarded as pledge and loan > If a person receives goods under a contract of sale where the seller has the right to buy back the goods, then for the purposes of this Act— > > > (a) the person receiving the goods is taken to be lending money on the security of the goods as pawned goods, and > > > (b) the price at which the goods are to be sold under the contract is taken to be the amount lent, and > > > (c) the difference between the amount lent and the price at which the goods may be bought back is taken to be the interest payable. > > **s 5:** Am 2005 No 62, Sch 1 \[3\].