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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.