115   Definitions

In this Part:

ASIC exemption means an exemption from the Corporations Act 2001 of the Commonwealth given by the Australian Securities and Investments Commission under that Act.

associate of a solicitor has the same meaning as in Division 1 of Part 6.

borrower means a person who borrows from a lender or contributor money that is secured by a mortgage.

client of a solicitor means a person who:

(a)  receives the solicitor’s advice about investment in a regulated mortgage or managed investment scheme, or

(b)  gives the solicitor instructions to use money for a regulated mortgage or managed investment scheme.

contributor means a person who lends, or proposes to lend, money that is secured by a contributory mortgage arranged by a solicitor.

contributory mortgage means a mortgage to secure money lent by 2 or more contributors as tenants in common or joint tenants, whether or not the mortgagee is a person who holds the mortgage in trust for or on behalf of those contributors.

financial institution means:

(a)  an authorised deposit-taking institution, or

(b)  a body that, immediately before 1 July 1999, was a society within the meaning of the Friendly Societies (NSW) Code or a body that is a friendly society for the purposes of the Life Insurance Act 1995 of the Commonwealth, or

(c)  a trustee company referred to in the Second Schedule to the Trustee Companies Act 1964, or

(d)  a property trust or other body corporate established by or in respect of a church that may invest money in accordance with an Act, or

(e)  a corporation or other body, or a corporation or body of a class, prescribed by the regulations for the purpose of this definition.

lender means a person who lends, or proposes to lend, a borrower money that is secured by a mortgage.

managed investment scheme has the same meaning as in the Corporations Act 2001 of the Commonwealth.

member of a managed investment scheme has the same meaning as in the Corporations Act 2001 of the Commonwealth.

mortgage means an instrument under which an interest in real property is charged, encumbered or transferred as security for the payment or repayment of money, and includes:

(a)  any instrument that is prescribed by the regulations as being a mortgage, and

(b)  a proposed mortgage.

professional misconduct has the same meaning as in Part 10.

regulated mortgage means a mortgage (including a contributory mortgage) other than:

(a)  a mortgage under which the lender is a financial institution, or

(b)  a mortgage under which the lender or contributors nominate the borrower, but only if the borrower is not a person introduced to the lender or contributors by the solicitor who acts for the lender or contributors or by:

(i)  an associate of the solicitor, or

(ii)  an agent of the solicitor, or

(iii)  a person engaged by the solicitor for the purpose of introducing the borrower to the lender or contributors, or

(c)  a mortgage, or a mortgage of a class, that the regulations prescribe as exempt from this definition.

responsible entity has the same meaning as in the Corporations Act 2001 of the Commonwealth.

run-out mortgage means a regulated mortgage that was entered into before the date of commencement of section 117, as inserted by the Legal Profession Amendment (Mortgage Practices) Act 2000, which is not:

(a)  a State regulated mortgage, or

(b)  a mortgage that forms part of a managed investment scheme that is required to be operated by a responsible entity under the Corporations Act 2001 of the Commonwealth (as modified by any ASIC exemption or the regulations under that Act).

State regulated mortgage is defined in section 116.

State regulated mortgage practice means a solicitor’s practice in respect of which a nomination made in accordance with section 118 is in force.