Victorian Consolidated Legislation

Land Acquisition and Compensation Act 1986 - SECT 45

Loans to dispossessed home owners

45. Loans to dispossessed home owners



(1) If-

   (a)  the whole or any part of land in which an acquired interest subsists
        is, on the date of acquisition of that land, occupied by the claimant
        as the claimant's principal place of residence; and

   (b)  the market value of the claimant's interest in the land does not
        exceed the amount prescribed from time to time by the Governor in
        Council; and

   (c)  the amount of compensation payable to the claimant under this Part is
        insufficient to enable the purchase of a similar interest in land to
        be used by the claimant as a principal place of residence providing
        accommodation reasonably comparable with the accommodation on the
        acquired land-

the Authority may, and must if directed by the Tribunal or the Court on the
application of the claimant, grant a loan (with or without interest) of such
amount as the claimant may reasonably require, in addition to the compensation
payable, to enable the claimant to purchase such reasonably comparable
accommodation.

(2) Any loan granted under subsection (1) must not exceed an amount equal to
the difference between the market value of the interest of the claimant which
is acquired, as assessed for compensation under this Part, and the amount
prescribed under subsection (1).

(3) If interest is payable on any loan granted under subsection (1), the rate
of that interest must not exceed the rate determined under section 52.

(4) Any loan granted under subsection (1) is subject to the following terms
and conditions-

   (a)  the loan must be secured by a mortgage of the interest in land
        purchased by the claimant to provide comparable accommodation;

   (b)  the loan is repayable if the interest is sold or if the claimant or
        the claimant's spouse or domestic partner cease to use the land as a
        principal place of residence or if the claimant and the claimant's
        spouse or domestic partner have both died;

   (c)  such other terms and conditions as are agreed upon between the
        Authority and the claimant, or, failing agreement, as are determined
        by the Tribunal or the Court on the application of either party.

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