51Avoiding contract for payment of loan advanced during minority

51 Avoiding contract for payment of loan advanced during minority (1) If a minor who has contracted a loan (a contract for the repayment of which is void under this Division) agrees after full age to repay all or part of that loan, that agreement and any instrument relating to it is, subject to subsections (2) and (3), void against everyone. (2) A person who— (a) in good faith; and (b) for value; and (c) without notice— is the holder or assignee of an instrument referred to in subsection (1) may recover from the minor the amount secured by the instrument. (3) If a person referred to in subsection (2) recovers from the minor the amount secured by the instrument, the minor may recover that amount from the person to whom the minor gave the instrument. (4) For the purposes of this section any interest, commission or other payment in respect of a loan is to be taken to be a part of the loan. Pt 5 Div. 4A (Heading and s. 51A) inserted by No. 15/1998 s. 11.