New South Wales Consolidated Acts

HOME BUILDING ACT 1989 - SECT 112

112 Trust Account

(1) The Administration Corporation is required to maintain with any one or more of a bank, building society or credit union in New South Wales a Home Building Trust Account (the "Trust Account") which is to consist of amounts held in the Building Services Corporation Trust Account which was maintained under this Act immediately before the commencement of this section.

(2) After the commencement of this section, the following amounts are to be paid into the Trust Account:

(a) amounts received as a consequence of rectification orders under this Act,

(b) amounts paid to the Administration Corporation by order of the Tribunal to be applied towards payment for work done or materials supplied,

(c) amounts voluntarily paid to the Administration Corporation in furtherance of the resolution of disputes concerning contracts to do residential building work or specialist work or to supply kit homes.

(3) Payments from the Trust Account may be made for the following purposes only:

(a) to pay for work carried out pursuant to a rectification order or as a consequence of the resolution of a dispute or in accordance with subsection (4),

(b) to repay a person who has paid money to the Corporation pursuant to a direction in a rectification order, as a consequence of the resolution of a dispute or in accordance with an order of the Tribunal, together with interest accrued on the money, but only to the extent that the money is not applied by the Corporation for a purpose referred to in paragraph (a),

(c) to invest money in the Trust Account by way of deposit with any one or more bank, building society or credit union in New South Wales.

(4) Any money paid to the Administration Corporation by order of the Tribunal to be applied towards payment for work done or materials supplied may be applied by the Corporation, at such time or times and to such extent as the Tribunal directs, for that purpose.