South Australian Repealed Acts

This legislation has been repealed.

RETIREMENT VILLAGES ACT 1987 - SECT 18

18—Premiums

        (1)         Subject to subsection (2) , a premium paid to the administering authority must be held in trust (in an ADI account or in a form of investment in which trustees are authorised by statute to invest trust money) until—

            (a)         the person by or on whose behalf the premium was paid enters into occupation of a residence; or

            (b)         it becomes apparent that that person will not enter into occupation of a residence.

        (2)         The Minister may, on the application of an administering authority, grant an exemption from subsection (1) if satisfied of the authority's capacity and willingness to provide residences in accordance with any contract entered into between the administering authority and a prospective resident.

        (3)         An exemption may be conditional or unconditional, and if an administering authority contravenes or fails to comply with a condition of an exemption the authority will be guilty of an offence.

Maximum penalty: $10 000.

        (4)         If a prospective resident decides not to enter into occupation of a residence, the premium must be refunded to the prospective resident within 10 business days of the prospective resident giving the administering authority written notice of that decision, with interest and accretions arising from investment of the premium to be disposed of as follows:

            (a)         if the failure to enter into occupation is attributable to a failure on the part of the administering authority to carry out contractual obligations—any such interest and accretions must be paid to the prospective resident;

            (b)         in any other case—the administering authority is entitled to retain any such interest and accretions.

        (5)         If a provision of this section is not observed, the administering authority is guilty of an offence.

Maximum penalty: $35 000.