Section 5 — Credit Contracts and Consumer Finance Act 2003: Interpretation

5 Interpretation In this Act, unless the context otherwise requires,— advance means— (a) money provided to the debtor or to another person to the order of the debtor: (b) a pre-existing monetary obligation of the debtor that is paid, discharged, or consolidated by the creditor: (c) the cash price of any property or services purchased by the debtor from the creditor: (d) 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may be annual interest rate means a rate specified in the credit contract as an annual interest rate associated person [Repealed] associated person: this definition was repealed, as from 25 August 2005, by section 75 Overseas Investment Act (2005 No 82). See sections 76 to 79 of that Act as to the transitional provisions. See clause 2 Overseas Investment Act Commencement Order 2005 (SR 2005/219). 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); but does not include the following (a) a buy-back default fee: (b) 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— (a) the person receives a fee in connection with the buy-back transaction from the occupier, the transferee, or any other person; or (b) 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— (a) 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 (b) 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 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 lease has the meaning set out in section 60 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 (including any insurance premiums payable if the creditor requires the debtor to obtain insurance cover from a particular insurer); but does not include the following (a) interest charges: (b) a charge for an optional service: (c) a default fee or a default interest charge: (d) government charges, duties, taxes, or levies 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,— (a) insurance over secured property or leased goods; or (b) 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 (c) 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 means a person who provides, or may provide, credit 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 daily interest rate means the rate determined by dividing the annual interest rate by 365 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 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 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 (a) a natural person for whom the settlor has natural love and affection: (b) an organisation or a trust whose income is exempt under section CB 4(1)(c) or (e) of the Income Tax Act 1994 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 guarantor , in relation to a credit contract,— (a) means a person who— (i) guarantees the performance of a debtor's obligations under the contract; or (ii) indemnifies a creditor against any loss that the creditor may incur in connection with the contract; or (iii) assumes liability for performing the obligations of a debtor under the contract; but (b) does not include a person who indemnifies a creditor against any loss that the creditor may incur in connection with the contract under a contract of insurance information system means a system for producing, sending, receiving, storing, displaying, or otherwise processing electronic communications interest charge means a charge that accrues over time and is determined by applying a rate to an amount owing under a credit contract lawyer has the meaning given to it by section 6 of the Lawyers and Conveyancers Act 2006 lease means a contract for the hire of goods 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 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 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 revolving credit contract means a credit contract, whether or not the contract specifies a credit limit, if the contract— (a) anticipates multiple advances, to be made when requested by the debtor in accordance with the contract; and (b) 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, consumer lease, or buy-back transaction, without regard to— (a) the form of the transaction; and (b) the identity of the person who has title to the property that is subject to the security 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 working day means a day of the week other than— (a) a Saturday, a Sunday, Waitangi Day, Good Friday, Easter Monday, Anzac Day, the Sovereign's Birthday, and Labour Day; and (b) a day in the period commencing with 25 December in a year and ending with 2 January in the following year; and (c) if 1 January falls on a Friday, the following Monday; and (d) if 1 January falls on a Saturday or a Sunday, the following Monday and Tuesday. Section 5 lawyer : amended, on 1 August 2008, by section 348 of the Lawyers and Conveyancers Act 2006 (2006 No 1).