New South Wales Consolidated Regulations

HOME BUILDING REGULATION 2014 - REG 62ZZI

62ZZI Contributions by licensed providers to Home Building Insurers Guarantee Fund

(1) For the purposes of section 104C (2) (b) of the Act, licensed providers are to pay contributions to the Home Building Insurers Guarantee Fund in respect of a relevant period, and of an amount, determined by the Authority. Contributions are to be made according to the following arrangements--

(a) the Authority is to notify the licensed provider in writing of the amount that the licensed provider is required to contribute in respect of a relevant period and the date by which that amount must be contributed,

(b) the Authority is to provide the licensed provider with the information necessary to enable the contribution to be paid to the Authority by electronic funds transfer.

(2) When determining the contribution payable to the Fund by licensed providers for a relevant period, the Authority is to have regard to the sufficiency of the Fund to manage the risk of--

(a) any licensed provider that operates a fidelity fund scheme becoming the subject of a declaration under clause 62ZZJ, or

(b) any other licensed provider becoming the subject of a declaration under section 103G (Insolvent insurers) of the Act.

(3) It is a condition of the licence of a licensed provider that the licensed provider pay contributions in accordance with this clause.

(4) A
"relevant period" is a financial year or any other period that the Authority determines from time to time to be a relevant period for the purposes of this clause. Relevant periods can be determined so as to overlap but there must be no gap between successive relevant periods and each relevant period must not be longer than 12 months.

(5) The Authority may determine different contributions for different classes of licensed providers and may determine that a licensed provider or class of licensed providers is not liable to pay a contribution in respect of a relevant period.

(6) Section 103OB (6) of the Act applies to a contribution that is payable under this clause, as if it were a contribution payable under that section.

(7) In the case of an alternative indemnity product that is a fidelity fund scheme, payment under this clause is to be made from the trust fund from which cover is provided.

(8) In this clause--

"financial year" means a year commencing on 1 July.