Default under regulated agreements
I118Definition of “default sum”
1
After section 187 of the 1974 Act insert—
187ADefinition of ‘default sum’
1
In this Act ‘default sum’ means, in relation to the debtor or hirer under a regulated agreement, a sum (other than a sum of interest) which is payable by him under the agreement in connection with a breach of the agreement by him.
2
But a sum is not a default sum in relation to the debtor or hirer simply because, as a consequence of his breach of the agreement, he is required to pay it earlier than he would otherwise have had to.
2
In section 189(1) of that Act (definitions) after the definition of “default notice” insert—
‘default sum’ has the meaning given by section 187A;