Victorian Consolidated Legislation

House Contracts Guarantee Act 1987 - SECT 17A

Application of payments10

17A. Application of payments10





(1) If a claim relates to a failure to complete building work or a defect in
building work and that claim was accepted by the approved guarantor before the
appointed day or is accepted by VMIA on or after the appointed day, or is
upheld on appeal, any payment made by VMIA in respect of that claim may be
made on the condition that it is applied for the purpose of completion of that
work or the rectification of that defect.

(2) VMIA need not impose a condition under subsection (1) if it considers that
it is unreasonable or impracticable to apply the payments for that purpose.

(3) VMIA may make a payment which is subject to a condition imposed under
subsection (1)-

   (a)  to or at the direction of the claimant, if the claimant gives an
        undertaking to apply the payment for the purpose for which it is made;
        or

   (b)  to any person carrying out the building work in respect of which the
        payment is made.

(4) If the claimant is dissatisfied with a decision of VMIA to make a payment
in accordance with subsection (3)(b), the claimant may, within 28 days after
receiving notice from VMIA of the decision, appeal to the Tribunal against the
decision.

__________________