Victorian Consolidated Legislation

Building and Construction Industry Security of Payment Act 2002 - SECT 39

When assignment ceases to operate

39. When assignment ceases to operate



(1) If a certified debt is discharged, or the judgment that resulted in a debt
certificate being issued in respect of the certified debt is set aside by a
court, any assignment effected by operation of this Division in connection
with that debt ceases to operate.

(2) If only part of the certified debt is discharged, the assignment effected
in respect of that part of the certified 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 or setting aside of the debt. To the extent
necessary to give effect to that payment or dealing, the assignment effected
by operation of this Division is taken to continue in force.

Note If a principal makes a payment to a claimant (as required by section 35),
instead of paying the respondent, without knowing that the debt owed to the
claimant has been discharged by the respondent, this section protects the
principal from being required by the respondent to make payment to the
respondent.