Part II Credit Agreements, Hire Agreements and Linked Transactions
11 Restricted-use credit and unrestricted-use credit.
1
A restricted-use credit agreement is a regulated consumer credit agreement—
a
to finance a transaction between the debtor and the creditor, whether forming part of that agreement or not, or
b
to finance a transaction between the debtor and a person (the “supplier ”) other than the creditor, or
c
to refinance any existing indebtedness of the debtor’s, whether to the creditor or another person,
and “restricted-use credit ” shall be construed accordingly.
2
An unrestricted-use credit agreement is a regulated consumer credit agreement not falling within subsection (1), and “unrestricted-use credit ” shall be construed accordingly.
3
An agreement does not fall within subsection (1) if the credit is in fact provided in such a way as to leave the debtor free to use it as he chooses, even though certain uses would contravene that or any other agreement.
4
An agreement may fall within subsection (1)(b) although the identity of the supplier is unknown at the time the agreement is made.