16Alternative to a bond—guarantee or indemnity

16 Alternative to a bond—guarantee or indemnity (1) Subject to subsection (2), in addition to or in place of a bond, a lessor may accept either a guarantee or an indemnity for the performance of a tenant’s obligations under a residential tenancy agreement. (2) A guarantee or an indemnity under subsection (1) is only enforceable against the guarantor or indemnifier— (a) if it is in addition to a bond—to the extent of the difference between the maximum amount that would have been payable by the tenant as a bond and the amount that is payable by the tenant as a bond; or (b) if it is in place of a bond—to the extent of the maximum amount that would have been payable by the tenant as a bond. (3) A term of a commercial guarantee, in relation to a residential tenancy agreement, that is inconsistent with, or is in addition to, a registered standard guarantee contract is void. (4) If a regulation requires a commercial guarantee to include a term in the contract, the guarantee is taken to include the term. (5) If a regulation requires a matter to be excluded from a commercial guarantee, the guarantee is void to the extent that it includes the matter. registered standard guarantee contract means a standard guarantee contract registered under section 104.

Lessor’s obligations on signing agreement Division 2.4