DEFENCE SERVICE HOMES ACT 1918 - SECT 22 Certificate of entitlement: transfer of property subject to specified portfolio asset or advance

DEFENCE SERVICE HOMES ACT 1918 - SECT 22

  (1)   Subject to subsection   (1AA), if any land, land and dwelling - house or right of residence in a retirement village is subject to:

  (a)   a specified portfolio asset which vests in the Bank under section   6B; or

  (b)   a mortgage or other security securing a subsidised advance;

a transfer of the estate, interest or right of the purchaser or borrower in that land or land and dwelling - house, or in relation to that right of residence, being a transfer subject to that specified portfolio asset, mortgage or other security, has no effect unless the Secretary has issued a certificate of entitlement to the proposed transferee in relation to the transfer.

  (1AA)   Subsection   (1) does not apply if the subsidised advance referred to in paragraph   (1)(b) is an assigned advance.

  (1A)   If:

  (a)   a person has obtained a right of residence in a retirement village; and

  (b)   the person is a borrower in relation to that right of residence and is liable to pay the outstanding amount of a subsidised advance in respect of which subsidy is payable; and

  (c)   the relevant credit provider has no security for the subsidised advance;

a transfer of the person's right of residence, while the person's liability under paragraph   (b) remains, has no effect unless the Secretary has issued a certificate of entitlement to the proposed transferee in relation to the transfer.

  (2)   The Secretary:

  (a)   shall not issue a certificate of entitlement in relation to consent that the person may seek from a credit provider to a transfer unless satisfied that, in all the circumstances, it is reasonable to do so; and

  (b)   may, before issuing the certificate, require a person to take such action (including the giving of an undertaking by the proposed transferee) as the Secretary considers reasonable in the circumstances.

  (3)   A certificate of entitlement under this section (other than one that relates to a home support advance) may be issued only to a proposed transferee who is an eligible person.

  (3A)   A certificate of entitlement under this section that relates to a home support advance may be issued only to a proposed transferee who is an eligible person or an eligible veteran.

  (4)   A certificate of entitlement under this section remains in force until the subsidy to which it relates ceases to be payable under this Act.

  (5)   A certificate of entitlement under this section shall:

  (a)   contain a statement to the effect that the Secretary consents to the transfer to the proposed transferee and that the Commonwealth will continue to pay subsidy in relation to the specified portfolio asset or subsidised advance if the transfer to the proposed transferee is carried out;

  (b)   specify the maximum amount in respect of which subsidy is payable;

  (c)   specify the maximum term during which subsidy will be paid;

  (d)   specify the relevant rate of interest payable on the specified portfolio asset or subsidised advance; and

  (e)   contain particulars of such other matters (if any) as are specified in the agreement.

  (6)   Subject to this section but in spite of any other provision of this Act, where land, or land and a dwelling - house, has been transferred to a transferee who is not an eligible person or an eligible veteran, section   45A does not apply to the transferee's interest in the land, or land and dwelling - house.

  (7)   This section does not apply to:

  (a)   a transfer of land, land and a dwelling - house or right of residence in a retirement village, to a credit provider as a result of the exercise by the credit provider of its powers under the relevant mortgage or other security; or

  (b)   where the purchaser or owner of land, land and a dwelling - house or right of residence in a retirement village, dies--a transmission of the land, land and a dwelling - house or right of residence in a retirement village, to the executor or administrator of the estate of the purchaser or owner; or

  (c)   a transfer of a person's right of residence in a retirement village to the owner or owners of the retirement village.

  (8)   A reference in this section to a transfer, in relation to land or land and a dwelling - house, includes a reference to a transfer of shares giving rise to a company title in respect of the land or land and dwelling - house.