Page 4939 - Week 15 - Thursday, 8 December 1994

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9

TRANSACTION WAS UNJUST. THE CODE SETS OUT CERTAIN CIRCUMSTANCES THAT THE COURT CAN TAKE INTO ACCOUNT IN DETERMINING WHETHER A TRANSACTION SHOULD BE REOPENED AND I INVITE YOU TO PERUSE SUBCLAUSE 70 (2). THE SUBCLAUSE OUTLINES A NUMBER OF FACTORS TO WHICH THE COURT MAY HAVE REGARD. HOWEVER, THESE ARE NOT INTENDED TO BE EXHAUSTIVE.

HOME LENDING AND OVER COMMITMENT ARE OF PARTICULAR CONCERN TO THIS GOVERNMENT. THE CONSUMER CREDIT CODE HAS NOT BEEN DRAFTED WITH THE INTENTION OF REQUIRING CREDIT PROVIDERS TO MAKE INQUIRIES BEYOND THOSE ORDINARILY MADE BY PRUDENT LENDERS. NOR IS IT INTENDED TO PLACE OBSTACLES IN THE WAY OF LENDERS GIVING CREDIT TO BORROWERS WHO MAKE IT CLEAR FROM THE OUTSET THAT THEY WILL HAVE DIFFICULTIES REPAYING THEIR LOAN BUT NEVERTHELESS WANT TO TAKE ON THE OBLIGATION BECAUSE OF THE LIFESTYLE THEY WISH TO PURSUE. THIS OFTEN HAPPENS WITH YOUNG PEOPLE WHEN THEY ARE BUYING THEIR FIRST HOME. IT IS INTENDED TO DEAL WITH THOSE LENDERS WHO CONSCIOUSLY LEND WITHOUT MAKING PROPER INQUIRIES INTO THE DEBTORS ABILITY TO PAY, RATHER THAN THOSE LENDERS AND BORROWERS WHO HAVE GONE DOWN THIS PATH AND MADE A CONSCIOUS DECISION BASED ON THE BEST INFORMATION AVAILABLE.

IN RELATION TO TERRITORY PUBLIC HOUSING ASSISTANCE

AGENCIES WHICH ARE COVERED BY THE CODE, I POINT OUT THAT IT

IS CERTAINLY IN THE PUBLIC INTEREST THAT THESE AGENCIES

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