CONTRACTORS DEBTS ACT 1997 - SECT 12
Assignment ceases to operate on discharge of debt
CONTRACTORS DEBTS ACT 1997 - SECT 12
Assignment ceases to operate on discharge of debt
12 Assignment ceases to operate on discharge of debt
(1) If the debt owed to an unpaid person by a defaulting contractor is
discharged, or the judgment or order that resulted in a debt certificate being
issued in respect of the debt is set aside, any assignment effected by
operation of this Act in connection with that debt ceases to operate.
(2) If
only part of the debt is discharged, the assignment effected in respect of
that part of the debt ceases to operate.
(3) This section does not affect any
payment or dealing that is made by a principal in good faith before the
principal receives notice, and sufficient evidence of, the discharge of the
debt or the setting aside of the judgment or order. To the extent necessary to
give effect to such a payment or dealing, the assignment effected by operation
of this Act is taken to continue in force.