Report No. 168

5. Amendment of section 7.-

In section 7 of the principal Act,-

(a) In sub-section (1):

(i) clause (a) shall be omitted;

(ii) clause (b) shall be re-lettered as clause (a);

(iii) clause (c) shall be re-lettered as clause (b), and in clause (b) as so re-lettered, for the words, brackets and letters "as defined in clause (b)", the words, brackets and letters "as defined in clause (a)" shall be substituted;

(iv) clause (d) shall be re-lettered as clause (c), and in clause (c) as so re-lettered, for the words "net hire-purchase charges", the words "hire-purchase charges" shall be substituted;

(v) clause (e) shall be re-lettered as clause (d), and in clause (d) as so re-lettered-

(A) in the opening portion, for the word "less-the words, brackets and letter "less any deposit as defined, in clause (a);" shall be substituted;

(B) sub-clauses (i) to (iii) shall be omitted.

(vi) for clause (f), the following clause shall be substituted, namely:-

"(e) "statutory hire-purchase charges" in relation to a hire-purchase agreement, means the amount calculated in accordance with the provisions of sub-section (2)";

(b) for sub-section (2), the following sub-section shall be substituted, namely:-

"(2) The statutory hire-purchase charges shall be an amount calculated at the rate of eighteen per centurn per annum, or if a lower rate is specified under sub-section (3) at such lower rate in accordance with the following formula:-

SC =	NCxRxT 100

where S.- represents the statutory hire-purchase charges;

N.- represents the net cash price; R- represents the rate; and

.- represents the time expressed in years and fractions of years, that elapses between the date of the agreement and the date on which the last hire-purchase instalment is payable under the agreement."

(c) in sub-section (3),

(i) the words, "being a rate which shall not be less than ten per centum per annum," shall be omitted;

(ii) for the words "statutory charges", the words "statutory hire-purchase charges" shall be substituted;

(d) in sub-sections (4),

(i) for the words "net hire-purchase charges", wherever they occur, the words "hire-purchase charges" shall be substituted;

(ii) for the words "statutory charges", wherever thy occur, the words, "statutory hire-purchases charges" shall be substituted.