Defence Service Homes Amendment Act 1980 (Cth)

Defence Service Homes Amendment Act 1980

No. 4 of 1980

An Act to amend the Defence Service Homes Act 1918

[Assented to 19 March 1980]

BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:

Short title, &c.

1. (1) This Act may be cited as the Defence Service Homes Amendment Act 1980.

(2) The Defence Service Homes Act 1918 is in this Act referred to as the Principal Act.

Commencement

2. (1) Subject to sub-section (2), this Act shall come into operation on the day on which it receives the Royal Assent.

(2) Section 9 shall come into operation on the day on which section 11 of the Defence Service Homes Amendment Act 1978 comes into operation.

Title

3. The title of the Principal Act is repealed and the following title substituted:

“An Act to provide assistance to members of the Defence Force and certain other persons to acquire homes.”.

Sale of dwelling-houses

4. Section 19 of the Principal Act is amended by omitting from sub-section (7) “, and of interest accumulated thereon,”.

Maximum advances

5. Section 21 of the Principal Act is amended—

(a) by omitting from sub-section (1) “(not exceeding ninety per centum of the total value of the property in respect of which the advance is made)”; and

(b) by omitting sub-section (2).

 

Conditions of grant of advance

6. Section 24 of the Principal Act is repealed.

Mortgage required to secure advance

7. Section 25 of the Principal Act is amended by omitting “and such additional security (if any) as the Corporation requires” and substituting “and, if the Corporation considers that that security is not adequate for the advance, such additional security as the Corporation requires”.

Payment of purchase money and repayment of advance

8. Section 29 of the Principal Act is amended by omitting from sub-section (2) “, not being less than Two dollars”.

Insurance of dwelling-houses, &c.

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 interests 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;”.

Interest on moneys invested from the Defence Service Homes Insurance Trust Account

10. Section 40a of the Principal Act is amended by omitting sub-sections (2) and (3) and substituting the following sub-sections:

“(2) Interest on the investment of any moneys standing to the credit of the Defence Service Homes Insurance Trust Account shall be credited to that Account.

 

“(3) Moneys referred to in sub-section (2) shall, for the purpose of calculating the amount to be paid under sub-section (1), be deemed not to have been standing to the credit of the Defence Service Homes Insurance Trust Account during any period in respect of which interest earned on the moneys is payable to that Account by virtue of sub-section (2).”.

Dwelling-houses for incapacitated soldiers

11. Section 47 of the Principal Act is amended—

(a) by omitting from sub-section (1) “Department of Repatriation” and substituting “Department of Veterans’ Affairs”; and

(b) by omitting from sub-section (2) “the Minister for Repatriation” and substituting “the Minister”.