House Contracts Guarantee (HIH Further Amendment) Act 2002

i House Contracts Guarantee (HIH Further Amendment) Act 2002 Act No. 25/2002 TABLE OF PROVISIONS Section Page 1. Purpose 1 2. Commencement 1 3. Principal Act 2 4. Interpretation 2 5. New section 36A inserted 3 36A. Existing proceedings to be affected by amendments 3 6. Indemnity 3 7. Who is not covered by the indemnity? 4 8. New Schedule inserted 6 SCHEDULE—Saving of Claims 6 ═══════════════ ENDNOTES 7 -- 1 of 8 -- 1 House Contracts Guarantee (HIH Further Amendment) Act 2002 † [Assented to 12 June 2002] The Parliament of Victoria enacts as follows: 1. Purpose The purpose of this Act is to make various amendments to the House Contracts Guarantee Act 1987 in relation to the Domestic Building (HIH) Indemnity Scheme. 2. Commencement This Act is deemed to have come into operation on 8 June 2001. Victoria No. 25 of 2002 -- 2 of 8 -- Act No. 25/2002 House Contracts Guarantee (HIH Further Amendment) Act 2002 2 3. Principal Act In this Act, the House Contracts Guarantee Act 1987 is called the Principal Act. 4. Interpretation (1) In section 35 of the Principal Act insert the following definitions— ' "building owner" has the same meaning as it has in the Domestic Building Contracts Act 1995; "building site" has the same meaning as it has in the Domestic Building Contracts Act 1995; "developer" in relation to a HIH policy, means any building owner or other person for whom three or more homes were being or were proposed to be built— (a) on any one building site; or (b) on more than one building site under a major domestic building contract— at the time that the building work to which the HIH policy applied commenced; "home" has the same meaning as it has in the Domestic Building Contracts Act 1995; "major domestic building contract" has the same meaning as it has in the Domestic Building Contracts Act 1995;'. s. 3 See: Act No. 44/1987 Reprint No. 4 as at 8 June 2001 and amending Act No. 44/2001. LawToday: www.dms. dpc.vic. gov.au -- 3 of 8 -- Act No. 25/2002 House Contracts Guarantee (HIH Further Amendment) Act 2002 3 (2) At the end of section 35 of the Principal Act insert— "(2) In calculating the number of homes that were being built or were proposed to be built for the purposes of determining whether a building owner or other person is a developer, a home which was or was to be the principal place of residence of that building owner or person is to be disregarded.". 5. New section 36A inserted After section 36 of the Principal Act insert— "36A. Existing proceedings to be affected by amendments To avoid doubt it is declared that the amendments made to this Part by the House Contracts Guarantee (HIH Further Amendment) Act 2002 are intended to affect the rights of parties to proceedings commenced in any court or tribunal but not finally determined before the date on which that Act received the Royal Assent.". 6. Indemnity At the end of section 37 of the Principal Act insert— "(2) Despite any provision of a HIH policy which limits the liability of HIH if it ceases to trade, a person is deemed for the purposes of this section to be entitled to an indemnity under a HIH policy if that person would have been entitled to that indemnity if HIH had not ceased to trade.". s. 5 -- 4 of 8 -- Act No. 25/2002 House Contracts Guarantee (HIH Further Amendment) Act 2002 4 7. Who is not covered by the indemnity? (1) After section 38(1)(a) of the Principal Act insert— "(aa) to the developer covered by the HIH policy, or". (2) After section 38(1)(b) of the Principal Act insert— "(ba) to any loss indemnified under the HIH policy that is a not a loss of a kind required by the relevant order under section 135 of the Building Act 1993 to be indemnified; or". (3) After section 38(2) of the Principal Act insert— "(3) Section 37 does not apply to indemnify a loss if the indemnity for that loss under the HIH policy arises solely because— (a) a claim for the loss has been made on the HIH policy on or after 16 December 2000; and (b) the claim is deemed to have been accepted under the HIH policy because it was not dealt with by HIH within the period specified by the policy. (4) Nothing in sub-section (3) prevents section 37 from applying to indemnify a loss to the extent that the loss is indemnified under the HIH policy otherwise than in the circumstances set out in sub-section (3). (5) If— (a) a builder is entitled to an indemnity under a HIH policy in relation to building work; and s. 7 -- 5 of 8 -- Act No. 25/2002 House Contracts Guarantee (HIH Further Amendment) Act 2002 5 (b) the HIH policy was issued to comply with an order made before October 1998 under section 135 of the Building Act 1993; and (c) the building owner of the building work to which the HIH policy applies is not entitled to an indemnity under the HIH policy; and (d) the builder is not entitled to an indemnity under section 37 in respect of the indemnity under the HIH policy because of sub-section (1)(a)— the building owner is entitled to an indemnity under section 37 in respect of a loss to the same extent that the builder would have been entitled under that section in respect of that loss if sub-section (1)(a) had not been enacted. (6) The exclusion by sub-section (1)(aa) of a developer covered by a HIH policy from an indemnity under section 37 in respect of building work does not affect the right of any person who is the subsequent owner of the building or land on which the building work was carried out and who is covered by that HIH policy to an indemnity under section 37. (7) The exclusion by sub-section (1)(aa) of a developer covered by a HIH policy from an indemnity under section 37 in respect of building work does not apply to— (a) a person specified in the Schedule in respect of a claim lodged by that person with HGFL on the date specified in the Schedule in respect of that person; s. 7 -- 6 of 8 -- Act No. 25/2002 House Contracts Guarantee (HIH Further Amendment) Act 2002 6 (b) a developer who lodged a claim with HGFL before 1 November 2001 if settlement of the claim was reached with HGFL before the date on which the House Contracts Guarantee (HIH Further Amendment) Act 2002 received the Royal Assent.". 8. New Schedule inserted After Part 6 of the Principal Act insert— SCHEDULE Saving of Claims Claimant Date of Lodgement of Claim ANZ Banking Group Ltd A.C.N. 005 357 522 23 October 2001 Ausland Investment Group Pty Ltd A.C.N. 081 206 340 5 October 2001 Ausvimex Pty Ltd A.C.N. 077 213 917 30 July 2001 Louis Basil Bourazikas 8 August 2001 Forty Fifth Vilmar Pty Ltd A.C.N. 007 164 383 3 August 2001 Leicester Turtle Pty Ltd A.C.N. 086 751 224 1 August 2001 Tambo Ash Pty Ltd A.C.N. 067 404 602 16 August 2001 ═══════════════ s. 8 -- 7 of 8 -- Act No. 25/2002 House Contracts Guarantee (HIH Further Amendment) Act 2002 7 ENDNOTES † Minister's second reading speech— Legislative Assembly: 1 November 2001 Legislative Council: 29 November 2001 The long title for the Bill for this Act was "to further amend the House Contracts Guarantee Act 1987 in relation to the Domestic Building (HIH) Indemnity Scheme and for other purposes." Endnotes -- 8 of 8 --