Commonwealth Numbered Acts

DEFENCE SERVICE HOMES AMENDMENT ACT 1980 No. 4 of 1980 - SECT 9

9. Section 38 of the Principal Act is amended-

   (a)  by inserting after paragraph (a) of sub-section (1) the following
        paragraph:



"(aa) any dwelling-house in relation to which the Corporation proposes to make
an advance, being a dwelling-house in which the applicant for the advance has
an interest;",

   (b)  by inserting after sub-section (4) the following sub-sections:



"(4A) Notwithstanding sub-section (1), where-

   (a)  the Corporation has undertaken insurance in relation to a
        dwelling-house; and

   (b)  the Corporation was authorized to undertake that insurance by reason
        only that it proposed to make an advance in relation to the
        dwelling-house, the insurance so undertaken in relation to the
        dwelling-house does not cease to have force and effect by reason of
        the death of the applicant for the advance or that the Corporation,
        for a reason other than that the applicant has disposed of his
        interest in the dwelling-house, no longer proposes to make an advance
        in relation to the dwelling-house, but, unless the insurance has
        already ceased to have force and effect, the Corporation shall,
        subject to sub-section (4B), give reasonable notice in such manner as
        it deems fit to the person having an interest, or to each person
        having an interest, in the dwelling-house of its intention to
        terminate the insurance on a day specified in the notice and, on the
        expiration of the day so specified, the insurance shall, unless it has
        previously ceased to have force and effect, cease to have any force
        and effect.



"(4B) Where, in a case to which sub-section (4A) applies by reason of the
death of the applicant for an advance, the applicant is survived by a widow,
the Corporation shall not give notice of its intention to terminate the
insurance of the relevant dwelling- house unless and until it becomes
satisfied that an advance will not be, or is unlikely to be, made to the widow
in respect of that dwelling-house.



"(4C) Subject to this section, the Corporation may do all things necessary or
convenient to be done for the purpose of the Corporation undertaking insurance
and, in particular, but without limiting the generality of the foregoing, may
enter into an agreement of a kind known as a concessions agreement with a
person who is, or is likely to be, the mortgagee of property insured with the
Corporation.



"(4D) At all times during which the Corporation has an interest in a
dwelling-house or in any building materials on the site of a dwelling-house by
reason of an advance or sale by the Corporation, the person liable to repay
the advance or to pay the balance of the purchase money shall keep the
dwelling-house or building materials insured-

   (a)  with the Corporation; or

   (b)  for such amount and against such risks as the Corporation, having
        regard to its interest in the dwelling-house or building materials,
        reasonably requires, under a contract of insurance with a person who
        is authorized under the Insurance Act 1973 to carry on insurance
        business and who has entered into an agreement of a kind known as a
        concessions agreement with the Corporation in respect of all
        dwelling-houses insured with that person in which the Corporation has
        interests.



"(4E) If, at any time, a dwelling-house to which sub-section (4D) applies is
not insured as required by that sub-section or building materials to which
that sub-section applies are not so insured, the dwelling-house or building
materials shall be deemed to be insured with the Corporation and the person
required by that sub-section to keep the dwelling-house or building materials
insured shall be liable to the Corporation for premiums due to the Corporation
in respect of the insurance of the dwelling-house or building materials
undertaken by the Corporation."; and

   (c)  by omitting paragraphs (a) and (b) of sub-section (5) and substituting
        the following paragraph:



"(a) deeming dwelling-houses in which the Corporation has an interest, not
being dwelling-houses to which sub-section (4D) applies, to be insured with
the Corporation;".