Commonwealth Numbered Acts

DEFENCE SERVICE HOMES AMENDMENT ACT 1988 No. 124 of 1988 - SECT 9

9. After section 6A of the Principal Act the following sections are inserted:
Transfer of portfolio assets to the Bank

"6B. (1) Where a date in relation to the portfolio assets in a State or
Territory has been notified in writing by the Bank to the Corporation and the
Commonwealth in accordance with the agreement, the Minister shall determine
the vesting date in relation to the portfolio assets in that State or
Territory.

"(2) The Minister may determine a vesting date in relation to the portfolio
assets in a State or Territory that is different from the date notified by the
Bank but shall not determine a vesting date that is earlier than 3 days before
the date notified by the Bank or later than 3 days after that date.

"(3) Where the Minister determines a vesting date, the Minister shall
forthwith notify the Bank in writing of the determination.

"(4) A notice to the Bank shall not be taken, for any purpose, to be the
making of the determination to which it relates.

"(5) The Minister may refuse to determine a vesting date, or may revoke any
such determination, in accordance with the agreement.

"(6) Subject to this section, where the Minister determines a vesting date in
relation to the portfolio assets in a State or Territory, then, unless that
determination is revoked before that date:

   (a)  all rights, title and interest of the Corporation in the portfolio
        assets in that State or Territory as in force immediately before that
        date vest, by force of this section but not otherwise, in the Bank on
        that date;

   (b)  the Bank is on and after that date, by force of this section, liable
        to pay and discharge all debts, liabilities and obligations of the
        Corporation that existed immediately before that date under the
        portfolio assets in that State or Territory;

   (c)  in spite of any other provision of this Act, any contract in force
        immediately before that date, being a contract comprising a portfolio
        asset in that State or Territory, has effect on and after that date as
        if:

        (i)    the Bank were a party to the contract instead of the
               Corporation; and

        (ii)   any reference in the contract to the Corporation were (except
               in relation to matters that happened before that date) a
               reference to the Bank; and (d) the Commonwealth is, by force of
               this section, substituted for the Corporation as a party to any
               proceedings pending in any court immediately before that date
               (being proceedings to which the Corporation was a party and
               that relate to a portfolio asset in that State or Territory)
               and has the same rights in the proceedings as the Corporation
               had.

"(7) The Bank is not liable to pay or discharge any liability or obligation
arising out of proceedings to which the Commonwealth is substituted as a party
under paragraph (6) (d).

"(8) Where a portfolio asset vests in the Bank under this section, the bank is
bound by the terms and conditions of that asset and shall abide by and duly
perform those terms and conditions and any obligations of the Corporation
under that asset.

"(9) The provisions of this Act and the Defence Service Homes Regulations
specified in Schedule 2, as those provisions were in force immediately before
the commencing day, shall be taken to be terms and conditions of portfolio
assets which vest in the Bank under this section and, for that purpose, those
provisions shall be read as if:

   (a)  references to the Corporation (other than in section 30 and
        subsections 35 (2A) and 36A (1) of this Act as then in force) were
        references to the Bank;

   (b)  expressions used in those provisions that are defined in this Act as
        then in force had the same respective meanings as provided in those
        definitions; and

   (c)  they were further modified as specified in Schedule 2.

"(10) A provision of a portfolio asset requiring or permitting a person to
make payments under the asset at any office or to any person, other than the
Corporation, shall cease to have effect when the portfolio asset vests in the
Bank.

"(11) An undertaking given by a person in relation to a portfolio asset under
paragraph 35 (2) (b) of this Act, as in force before the commencing day,
shall, to the extent to which it has not been discharged before the day on
which that asset vests in the Bank under this section, continue to have effect
on and after that day as if it had been given by that person under paragraph
22 (2) (b) of this Act. Dealings relating to vested portfolio assets

"6C. (1) Where the Corporation, or any of its predecessors, is registered in a
State or Territory as the owner of an interest in a portfolio asset which
vests in the Bank under section 6B, the Bank may, subject to the agreement,
execute any receipt, discharge or other instrument in relation to that
interest in its own name, or in the name of the Corporation or the
Corporation's predecessor, as the case may be, and the Registrar-General,
Registrar of Titles, or other appropriate officer, of that State or Territory
may make such entries in his or her registers, and do such other things, as
are necessary to give effect to that receipt, discharge or other instrument.

"(2) The Bank may execute a transfer of land and a dwelling-house to the
purchaser of that land and dwelling-house under a contract of sale which vests
in the Bank under section 6B and any transfer so executed shall be taken to
have been made pursuant to and in conformity with the contract of sale.

"(3) A transfer referred to in subsection (2) is not liable to any ad valorem
tax under a State or Territory law if that ad valorem tax has been paid on the
relevant contract of sale. Transfer of certain other assets to Commonwealth

"6D. (1) On the winding-up day:

   (a)  all prescribed rights that, immediately before that day were vested in
        the Corporation vest on that day, by force of this subsection, in the
        Commonwealth; and

   (b)  the Commonwealth becomes, by force of this subsection, liable to pay
        or discharge any prescribed debts of the Corporation that existed
        immediately before that day.

"(2) Any prescribed contract to which the Corporation was a party immediately
before the winding-up day has effect on and after that day as if:

   (a)  the Commonwealth were substituted for the Corporation as a party to
        the contract; and

   (b)  any reference in the contract to the Corporation were (except in
        relation to things that happened before that day) a reference to the
        Commonwealth.

"(3) If, immediately before the winding-up day, prescribed proceedings to
which the Corporation was a party were pending in any court, the Commonwealth
is, on that day, by force of this subsection, substituted for the Corporation
as a party to the proceedings and has the same rights in the proceedings as
the Corporation had.

"(4) Where any interest in land situated in a State or Territory vests in the
Commonwealth under this section, the Secretary may lodge with the
Registrar-General, Registrar of Titles or other appropriate officer of that
State or Territory a notice signed by the Secretary, or by a person authorised
by the Secretary for the purpose, stating that that interest is vested in the
Commonwealth by this section, and the person with whom the notice is so lodged
may make such entries in his or her registers, and do such other things, as
are necessary to reflect the vesting of that interest in the Commonwealth.

"(5) In this section:
'prescribed contract' means a contract other than a contract referred to in
section 6B or an insurance contract within the meaning of section 38B;
'prescribed debt' means any debt, liability or obligation other than a debt,
liability or obligation referred to in section 6B or an insurance debt within
the meaning of section 38B;
'prescribed proceedings' means proceedings other than proceedings referred to
in section 6B or insurance proceedings within the meaning of section 38B;
'prescribed right' means any right, property or assets other than a right,
title or interest referred to in section 6B or an insurance right within the
meaning of section 38B.".