CONTRACTORS DEBTS ACT 1997 - SECT 8
Notice of claim operates as assignment of debt
CONTRACTORS DEBTS ACT 1997 - SECT 8
Notice of claim operates as assignment of debt
8 Notice of claim operates as assignment of debt
(1) Service of a notice of claim on the principal operates to assign to the
unpaid person the obligation of the principal to pay the money owed under the
contract to the defaulting contractor.
(2) The assignment is limited to the
amount of the unpaid person's certified debt.
(3) The assignment is subject
to any prior assignment under this Act that is binding on the principal and
the defaulting contractor.