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Hire-Purchase (Further Amendment) Act 1997

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					   Hire-Purchase (Further Amendment) Act 1997
                              Act No. 74/1997


                       TABLE OF PROVISIONS
Section                                                                 Page

PART 1—PRELIMINARY                                                         1
  1.      Purposes                                                         1
  2.      Commencement                                                     2

PART 2—AMENDMENT OF HIRE-PURCHASE ACT 1959                                 3
  3.      Application of Hire-Purchase Act 1959                            3
  4.      Definitions                                                      4

PART 3—AMENDMENT OF GOODS ACT 1958                                         5
  5.      New Part V inserted in Goods Act 1958                            5
          PART V—RIGHTS OF HIRERS UNDER HIRE-
          PURCHASE AGREEMENTS                                              5
          120. Definitions                                                 5
          121. Hirer's right to surplus if goods repossessed by owner      6
                              ═══════════════

NOTES                                                                      9




                                       i
                           Victoria



                      No. 74 of 1997


  Hire-Purchase (Further Amendment)
              Act 1997†
                              [Assented to 25 November 1997]




The Parliament of Victoria enacts as follows:


                   PART 1—PRELIMINARY

     1. Purposes
             The purposes of this Act are—
              (a) to amend the Hire-Purchase Act 1959 to
                  limit its application to certain hire-purchase
                  agreements;




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  Hire-Purchase (Further Amendment) Act 1997
                                                            s. 2
                Act No. 74/1997

        (b) to amend the Goods Act 1958 to provide
            that a hirer of goods may recover any surplus
            if the goods are repossessed by the owner.
2. Commencement
   (1) This Part comes into operation on the day on
       which this Act receives the Royal Assent.
   (2) Subject to sub-section (3), the remaining
       provisions of this Act come into operation on a
       day or days to be proclaimed.
   (3) If a provision referred to in sub-section (2) does
       not come into operation before 1 July 1998, it
       comes into operation on that day.
                _______________




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                    Hire-Purchase (Further Amendment) Act 1997
 s. 3
                                  Act No. 74/1997


                PART 2—AMENDMENT OF HIRE-PURCHASE ACT 1959

                  3. Application of Hire-Purchase Act 1959
No. 6531.                In section 1 of the Hire-Purchase Act 1959, for
Reprint No. 3
as at 27                 sub-section (4) substitute—
November
1991. Further            "(4) Subject to sub-sections (4A) and (4B), this
amended by                    Act does not apply to a hire-purchase
Nos 41/1995,
35/1996 and                   agreement or any agreement made in
19/1997.                      connection with a hire-purchase agreement
                              entered into on or after the commencement
                              of Part 2 of the Hire-Purchase (Further
                              Amendment) Act 1997.
                         (4A) This Act applies to a hire-purchase
                              agreement and any agreement made in
                              connection with a hire-purchase agreement
                              entered into and in operation immediately
                              before the commencement of Part 2 of the
                              Hire-Purchase (Further Amendment) Act
                              1997.
                         (4B) Sections 24 and 25 apply to a hire-purchase
                              agreement for farm machinery and any
                              agreement made in connection with such an
                              agreement if the agreement is entered into
                              within 2 years after the commencement of
                              Part 2 of the Hire-Purchase (Further
                              Amendment) Act 1997 and so apply as if a
                              reference to a notice in the form of the
                              Fourth Schedule were a reference to a notice
                              in the form required under the agreement.
                         (4C) An owner must not repossess farm
                              machinery under a hire-purchase agreement
                              to which sub-section (4B) applies unless the
                              owner gave to the hirer at the time that the
                              agreement was made a copy of sections 24
                              and 25, receipt of which was acknowledged
                              in writing by the hirer.".


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   Hire-Purchase (Further Amendment) Act 1997
                                                                 s. 4
                 Act No. 74/1997

4. Definitions
        In section 2 of the Hire-Purchase Act 1959
        insert—
        ' "farm machinery" means—
                 (a) a harvester, binder, tractor, plough or
                     other agricultural implement;
                 (b) a motor truck used for the purposes of a
                     farming undertaking or any other
                     business involving the cultivation of the
                     soil, the gathering of crops or the
                     rearing of livestock;'.
                 —————————




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                  Hire-Purchase (Further Amendment) Act 1997
 s. 5
                                Act No. 74/1997


                  PART 3—AMENDMENT OF GOODS ACT 1958

                5. New Part V inserted in Goods Act 1958
No. 6265.              After Part IV of the Goods Act 1958 insert—
Reprint No. 8
as at 22
January 1992.           'PART V—RIGHTS OF HIRERS UNDER HIRE-
                               PURCHASE AGREEMENTS

                       120. Definitions
                        (1) In this Part—
                            "hire purchase agreement" includes—
                                  (a) an agreement for the hire or
                                      letting of goods with an option to
                                      purchase; and
                                  (b) an agreement for the purchase of
                                      goods by instalments (whether the
                                      agreement describes the
                                      instalments as rent, hire or
                                      otherwise)—
                                 but does not include an agreement—
                                  (c) to which the Hire-Purchase Act
                                      1959 applies; or
                                  (d) under which the property in the
                                      goods comprised in the agreement
                                      passes at the time of the
                                      agreement or any time before the
                                      delivery of goods; or
                                  (e) that is a regulated contract within
                                      the meaning of the Credit Act
                                      1984; or
                                   (f) that is a credit contract within the
                                       meaning of the Consumer Credit
                                       (Victoria) Code.



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Hire-Purchase (Further Amendment) Act 1997
                                                         s. 5
              Act No. 74/1997

         "owner" means a person who lets, hires or
             agrees to sell goods under a hire-
             purchase agreement and includes a
             person to whom the owner's property in
             the goods or any of the owner's rights
             or liabilities under the agreement have
             passed by assignment or by operation
             of law;
         "hirer" means a person to whom goods are
              let, hired or agreed to be sold under a
              hire-purchase agreement and includes a
              person to whom the hirer's rights or
              liabilities under the agreement have
              passed by assignment or by operation
              of law.
     (2) A reference in this Part to taking possession
         by an owner of goods comprised in a hire-
         purchase agreement does not include a
         reference to taking possession by the owner
         as a result of the voluntary return of the
         goods by the hirer.
    121. Hirer's right to surplus if goods repossessed
         by owner
     (1) If an owner takes possession of goods
         comprised in a hire-purchase agreement and
         the agreement is neither reinstated nor
         finalised by the hirer, the hirer may recover
         from the owner—
          (a) if the owner sells or disposes of the
              goods, an amount equal to the proceeds
              of the sale of the goods; or
          (b) if the owner does not sell or dispose of
              the goods or fails to sell or dispose of
              the goods as soon as reasonably
              practicable after taking possession of
              the goods (or such other time as the


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       Hire-Purchase (Further Amendment) Act 1997
s. 5
                     Act No. 74/1997

                     owner and the hirer agree), an amount
                     equal to the value of the goods at the
                     time that the owner took possession of
                     the goods—
                less any amounts which the owner is entitled
                to deduct from those proceeds under this
                section.
            (2) An owner who sells or disposes of goods
                under sub-section (1) is entitled to deduct
                from the proceeds of sale or the value of the
                goods, as the case requires, only the
                following amounts—
                 (a) the total amount owed by the hirer
                     under the hire-purchase agreement at
                     the time the owner took possession of
                     the goods, not being an amount greater
                     than the amount required to discharge
                     the agreement; and
                 (b) the reasonable expenses of the owner
                     incurred in taking possession of the
                     goods; and
                 (c) any amount reasonably incurred by the
                     owner on the storage, repair or
                     maintenance of the goods; and
                 (d) the reasonable expenses incurred in
                     selling or disposing of the goods,
                     whether or not the goods have
                     subsequently been sold or disposed of
                     by the owner.
            (3) In this section "value of the goods" means
                the best price reasonably obtainable by the
                owner at the time the owner took possession
                of the goods.
            (4) The onus is on the owner to prove that the
                price obtained for the goods was the best


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Hire-Purchase (Further Amendment) Act 1997
                                                        s. 5
              Act No. 74/1997

         price reasonably obtainable at the time that
         the owner took possession of the goods.'.
          ═══════════════




                     8
                   Hire-Purchase (Further Amendment) Act 1997
Notes
                                 Act No. 74/1997


                                          NOTES

        †
            Minister's second reading speech—
            Legislative Assembly: 18 September 1997
            Legislative Council: 29 October 1997
            The long title for the Bill for this Act was "to amend the Hire-Purchase
            Act 1959 and the Goods Act 1958 and for other purposes."




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