5Interpretation

1. In this Act, unless the context otherwise requires,—

   advance means—

   1. money provided to the debtor or to another person to the order of the debtor:
   2. a pre-existing monetary obligation of the debtor that is paid, discharged, or consolidated by the creditor:
   3. the cash price of any property or services that are—
      1. purchased by the debtor from the creditor; or
      2. the subject of an agreement between the debtor and the creditor under which the debtor either is required to purchase the property or services from the creditor or has an option to make such a purchase:
   4. in the case of the use of a credit card to purchase property or services from a person who is not the creditor or to obtain money, the agreed price of the property or services or the monetary amount, as the case may be:
   5. in relation to a credit contract to which Part 3A applies that secures the obligations of the debtor as guarantor under a guarantee, the amount of the guarantor's liability to the creditor under the guarantee

   annual interest rate means a rate specified in the credit contract as an annual interest rate

   broker means a person who, for consideration, assists a person in obtaining credit

   buy-back default fees means fees or charges payable on a breach of a buy-back transaction by an occupier or on the enforcement of a buy-back transaction by a transferee

   buy-back fees means fees or charges payable by the occupier under a buy-back transaction, or payable by the occupier to, or for the benefit of, the transferee in connection with a buy-back transaction (including any insurance premiums payable if the transferee requires the occupier to obtain insurance cover from a particular insurer or particular insurers); but does not include the following:

   1. a buy-back default fee:
   2. government charges, duties, taxes, or levies

   buy-back promoter means a person who introduces the parties to a buy-back transaction to each other if—

   1. the person receives a fee in connection with the buy-back transaction from the occupier, the transferee, or any other person; or
   2. an associated person of that person receives a fee in connection with the buy-back transaction from the occupier, the transferee, or any other person

   buy-back transaction has the meaning set out in section 8

   cash price, in relation to property sold or leased, or to services provided under a contract, means—

   1. the lowest price at which a person could have purchased that property or those services from the vendor, lessor, or provider on the basis of payment in full at the time the contract was made; or
   2. if there is no price in accordance with paragraph (a), the fair market value of that property or those services at the time the contract was made

   certified means certified under Part 5A

   charge for an optional service means a fee or charge for a service or benefit that is offered to the debtor in connection with a credit contract if the debtor does not have to accept the service or benefit as a condition of entering into the contract

   Commission means the Commerce Commission established by the Commerce Act 1986

   consumer credit contract has the meaning set out in section 11

   consumer credit insurance means insurance cover in the event of the insured's disability or death or the insured contracting a sickness, sustaining an injury, or becoming unemployed, if the liability of the insurer is to be determined by reference to the liability of the insured under a credit contract or a consumer lease

   consumer goods means goods that are used or acquired for use primarily for personal, domestic, or household purposes

   consumer lease has the meaning set out in section 60

   costs of borrowing, in relation to a consumer credit contract, means any or all of the following costs:

   1. a credit fee:
   2. a default fee:
   3. interest charges

   costs of the buy-back transaction, in relation to a buy-back transaction, means any or all of the following costs:

   1. the rent payable under the right to occupy:
   2. the fees and charges that are payable under the transaction

   costs of the lease, in relation to a consumer lease, means any or all of the following costs:

   1. payments to be made by the lessee under the lease:
   2. fees or charges that are payable on a breach of the lease by the lessee or on the enforcement of the lease by the lessor

   court means, in relation to any matter, the court, tribunal, or arbitral tribunal by or before which the matter falls to be determined

   credit has the meaning set out in section 6

   credit contract has the meaning set out in section 7

   credit fees means fees or charges payable by the debtor under a credit contract, or payable by the debtor to, or for the benefit of, the creditor in connection with a credit contract, and—

   1. includes—
      1. establishment fees:
      2. prepayment fees as defined in section 43(2) (whether in relation to part prepayments or full prepayments):
      3. insurance premiums payable for credit-related insurance if the creditor requires the debtor to obtain insurance cover from a particular insurer or particular insurers:
      4. fees and charges payable as referred to in section 45 if the other person, body, or agency referred to in that section is an associated person of the creditor; but
   2. does not include—
      1. interest charges:
      2. charges for an optional service:
      3. default fees:
      4. government charges, duties, taxes, or levies:
      5. fees and charges payable as referred to in section 45 if the other person, body, or agency referred to in that section is not an associated person of the creditor:
      6. cancellation charges as referred to in section 36F of the Fair Trading Act 1986

   credit limit means the maximum unpaid balance permitted under the credit contract

   credit-related insurance means, in connection with a credit contract or consumer lease,—

   1. insurance over secured property or leased goods; or
   2. insurance that provides cover for the shortfall that occurs if secured property or leased goods are totally or substantially destroyed and the insurance proceeds from another insurance contract are insufficient to pay any outstanding obligations of the debtor under the credit contract or the lessee under the consumer lease; or
   3. consumer credit insurance

   credit sale means a contract involving the sale of property or the provision of services under which payment of the whole or a part of the purchase price is deferred; and includes a lease that is to be treated as a credit sale under section 16

   creditor—

   1. means a person who provides, or may provide, credit under a credit contract; and
   2. if the rights of that person are transferred by assignment or by operation of law, includes the person for the time being entitled to those rights; and
   3. includes a person declared by regulations to be a creditor; but
   4. does not include a person exempted by regulations from being a creditor

   creditor's agent means a person authorised by a creditor to repossess consumer goods on behalf of the creditor, and includes such a person who is an employee of the creditor

   daily interest rate means the rate determined by dividing the annual interest rate by 365

   debt collection has the meaning set out in section 132A

   debtor means a person to whom credit has been provided, or may be provided, under a credit contract; and, if the rights of that person are transferred by assignment or by operation of law, includes the person for the time being entitled to those rights

   default, in Part 3A, means 1 or more breaches of a credit contract by the debtor sufficient, according to the terms of the contract, to give rise to the creditor’s right to repossess the consumer goods

   default fees means fees or charges payable on a breach of a credit contract by a debtor or on the enforcement of a credit contract by a creditor; but does not include default interest charges

   default interest charges means additional interest charges payable on a breach of a credit contract by a debtor

   director has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

   dispute resolution scheme means an approved dispute resolution scheme within the meaning of section 50 of the Financial Service Providers (Registration and Dispute Resolution) Act 2008

   electronic includes electrical, digital, magnetic, optical, electromagnetic, biometric, and photonic

   electronic communication means a communication by electronic means

   establishment fees means the fees or charges payable under the credit contract that relate to the costs incurred by the creditor in connection with the application for credit, processing and considering that application, documenting the contract, and advancing the credit; but does not include any fee or charge to the extent that it is a charge for an optional service

   estate means a fee simple estate, a leasehold estate, or a stratum estate

   extended warranty means an agreement between a creditor or lessor and a debtor or lessee under which the creditor or lessor, for an additional consideration, agrees to repair or replace defective goods outside of the warranty period that would otherwise apply

   family trust means a trust that is established primarily to benefit either or both of the following:

   1. a natural person for whom the settlor has natural love and affection:
   2. an organisation or a trust whose income is exempt under section CB 4(1)(c) or (e) of the Income Tax Act 1994

   financing statement, in Part 3A, has the same meaning as in section 135 of the Personal Property Securities Act 1999

   full costs includes reasonable costs incurred between solicitor and client, fees, and other expenses

   full prepayment means the payment of the unpaid balance before the last amount to be paid under the credit contract becomes payable

   goods means personal chattels other than money and choses in action

   guarantee means a guarantee, indemnity, or liability given, assumed, or undertaken by a guarantor

   guarantor, in relation to a credit contract,—

   1. means a natural person who—
      1. guarantees the performance of a debtor's obligations under the contract; or
      2. indemnifies a creditor against any loss that the creditor may incur in connection with the contract; or
      3. assumes liability for performing the obligations of a debtor under the contract; but
   2. does not include such a person to the extent that the person indemnifies a creditor against any loss that the creditor may incur in connection with the contract under a contract of insurance

   high-cost consumer credit contract has the meaning set out in section 45C

   information system means a system for producing, sending, receiving, storing, displaying, or otherwise processing electronic communications

   infringement fee and infringement notice have the meanings set out in section 105A

   infringement offence has the meaning set out in section 102A

   interest charge means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit contract (and includes a default interest charge)

   lawyer has the meaning given to it by section 6 of the Lawyers and Conveyancers Act 2006

   layby sale agreement has the same meaning as in section 36B of the Fair Trading Act 1986

   lease means a contract for the hire of goods

   lender has the meaning set out in section 9B

   lender responsibility principles means the principles set out in section 9C(2)

   Minister means the Minister of the Crown who, under the authority of any warrant or with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

   Ministry means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

   mobile trader means a person who carries on a business of offering or agreeing to supply, in person and outside of fixed premises, consumer goods to a natural person—(whether or not the business is the provider’s only business or the provider’s principal business)

   1. under a credit sale (regardless of whether the contract is a consumer credit contract); or
   2. where all or a part of the supply of the consumer goods is to be financed by a consumer credit contract under which a creditor is an associated person of that person—

   mobile trader service means the financial service of being a mobile trader under section 5(1) of the Financial Service Providers (Registration and Dispute Resolution) Act 2008

   occupier has the meaning set out in section 8

   oppressive has the meaning set out in section 118

   paid adviser means a person who acts for consideration as an adviser to, or as a trustee, nominee, or agent of, 1 or more of the parties; but does not include a person who is an employee of 1 or more of the parties

   part prepayment means the payment of an amount that is less than the unpaid balance before that amount is payable under the credit contract

   payment, in relation to a credit sale, includes a deposit or a trade-in allowance

   payment reminder has the meaning set out in section 132A

   post-repossession notice means a notice under section 83V

   prescribed means prescribed by regulations made under this Act

   property means land, money, goods, choses in action, goodwill, and every valuable thing, whether real or personal, and whether situated in New Zealand or elsewhere

   public holiday means a day specified in section 44(1) of the Holidays Act 2003

   purchase money security interest has the same meaning as in section 16(1) of the Personal Property Securities Act 1999

   register of financial service providers means the register of financial service providers established and maintained under the Financial Service Providers (Registration and Dispute Resolution) Act 2008

   regulations means regulations in force under this Act

   related company has the same meaning as in section 2(3) of the Companies Act 1993

   repayment waiver means an agreement between a creditor or lessor and a debtor or lessee under which the creditor or lessor, for an additional consideration, agrees to waive the creditor's or lessor's right to any amount payable under the credit contract or consumer lease in the event of the unemployment of, sickness of, injury to, or the disability or death of the debtor or lessee

   repossession means the exercise, or purported exercise, of the creditor's rights under a credit contract relating to consumer goods to take possession of those goods, or keys and access devices relating to those goods, whether or not the creditor was previously in actual possession of those goods, keys, or access devices; and repossess has a corresponding meaning

   repossession warning notice means a notice under section 83G

   residential premises means a building, or part of a building, that is a house, flat, townhouse, home unit, or similar dwelling erected, or currently used, primarily and principally as a residence, and includes any land, improvements, or appurtenances belonging to the dwelling or usually enjoyed with it

   Responsible Lending Code or Code means the Code prepared and issued under section 9G

   revolving credit contract means a credit contract, whether or not the contract specifies a credit limit, if the contract—

   1. anticipates multiple advances, to be made when requested by the debtor in accordance with the contract; and
   2. does not limit the total amount to be advanced to the debtor under the contract

   security interest means an interest in property created or provided for by a transaction that, in substance, secures payment or performance of an obligation under a credit contract or buy-back transaction, without regard to—

   1. the form of the transaction; and
   2. the identity of the person who has title to the property that is subject to the security

   senior manager has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

   standard form contract terms—

   1. means standard form contract terms that are intended to be contained (in whole or in part) in a class of agreements (as defined in section 9B) and that—
      1. have been printed or otherwise prepared by, or on behalf of, the lender; and
      2. are used by the lender in concluding, or as a basis for concluding, such agreements; and
   2. includes standard form contract terms of a contract, an arrangement, a repayment waiver, or an extended warranty referred to in section 9B(3) or (4)

   transferee has the meaning set out in section 8

   unpaid balance means the amount owing under a credit contract at a particular time, being the difference between all amounts credited and all amounts debited to the debtor under the contract at that time

   unpaid daily balance, in relation to a day, means the unpaid balance under a credit contract at the end of that day

   weighted average annual interest rate has the meaning given in the regulations

   working day means a day of the week other than—

   1. a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign’s birthday, Te Rā Aro ki a Matariki/Matariki Observance Day, and Labour Day; and
   2. if Waitangi Day or Anzac Day falls on a Saturday or a Sunday, the following Monday; and
   3. a day in the period commencing with 25 December in a year and ending with 2 January in the following year; and
   4. if 1 January falls on a Friday, the following Monday; and
   5. if 1 January falls on a Saturday or a Sunday, the following Monday and Tuesday.