RETAIL LEASES ACT 1994 - SECT 16BA
Return of bank guarantees
RETAIL LEASES ACT 1994 - SECT 16BA
Return of bank guarantees
16BA Return of bank guarantees
(1) A lessor who receives a bank guarantee
for a lease must return the original bank guarantee to the lessee within 2
months (the
"maximum return period" ) after the lessee completes performance of the
obligations under the lease for which the bank guarantee is provided as
security.
: Maximum penalty--50 penalty units.
(2) A lessor is not required
to return a bank guarantee if it has expired or been cancelled.
(3) The
maximum return period does not run for any period during which the matter of
the lessor's entitlement to claim or realise the bank guarantee is the subject
of proceedings pending in a court or the Tribunal.
(4) A lessor who is unable
to return an original bank guarantee is able to satisfy the requirement under
this section or an order of the Tribunal to return the bank guarantee by
providing any consent or release necessary to have the bank guarantee
cancelled.
(5) A lessor is liable to pay to the lessee compensation for--
(a)
any loss or damage suffered by the lessee as a result of any failure by the
lessor to return a bank guarantee in compliance with this section or an order
of the Tribunal, and
(b) reasonable costs incurred by the lessee in
connection with the cancellation of a bank guarantee because the lessor was
unable to return the original bank guarantee in compliance with this section
or an order of the Tribunal.
(6) In this section,
"bank guarantee" means a guarantee from an authorised deposit-taking
institution in satisfaction of any requirement to provide a security bond or
other bond or a third party guarantee for the performance of the lessee's
obligations under the lease.
