Queensland Consolidated Acts

BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 58B

58B Failures and defects do not affect validity

(1) The failure of a trustee to comply with an obligation relating to a project trust or retention trust does not affect the validity of the trust.

(2) If a trustee’s failure to comply with an obligation relating to a project trust or retention trust would prevent another person (the
"affected person" ) from taking action under this chapter, the trustee is taken to have complied with the obligation to the extent it enables the affected person to take the action.

(3) A defect in a document relating to a project trust or retention trust does not affect the validity of the trust or the ability of a beneficiary to rely on the document, as it would be without the defect, for the purpose of exercising a right under this chapter.

(4) If an amount must be deposited into a trust account under section 19 or 35 , the failure of a person to deposit the amount does not release the amount from the relevant project trust or retention trust.

(5) Nothing in this section prevents action being taken against a trustee for the trustee’s failure to comply with an obligation relating to a project trust or retention trust, nor relieves the trustee of the obligation.

(6) In this section—

"obligation" means an obligation under this chapter.

"trustee" means—

(a) the trustee of a project trust or retention trust; or

(b) a person who would, if not for a failure to comply with an obligation to establish a project trust or retention trust, be the trustee of that trust.