Housing Loans Insurance Regulations (Cth)

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STATUTORY RULES

1966 No.

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REGULATIONS UNDER THE HOUSING LOANS INSURANCE ACT 1965.*

I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations, being regulations in accordance with a recommendation made to the Minister of State for Housing by the Housing Loans Insurance Corporation, under the Housing Loans Insurance Act 1965.

Dated this thirty first day of March, 1966.

Casey

Governor-General.

By His Excellency’s Command,

   

Minister of State for Housing.

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HOUSING LOANS INSURANCE REGULATIONS

Citation.

1. These Regulations may be cited as the Housing Loans Insurance Regulations.

Repeal.

2. The Housing Loans Insurance Regulations (being Statutory Rules 1965, No. 171) are repealed.

Interpretation.

3.—(1.) In these Regulations, unless the contrary intention appears—

“alter”, in relation to a dwelling-house, includes improve or extend the dwelling-house;

“lot”, in relation to a strata plan, means any of the parcels into which land is subdivided by the strata plan, whether the parcels are called lots, flats or building units or are described in some other manner;

“more than two units of accommodation” means—

(a) a dwelling-house constituting three or more units of accommodation;

(b)two dwelling-houses one of which, or each of which, constitutes two or more units of accommodation; or

(c) three or more dwelling-houses (whether or not one of the dwelling-houses constitutes, or two or more of the dwelling-houses each constitute, two or more units of accommodation);

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* Notified in the Commonwealth Gazette on 1 April, 1966.

15805/65.—Price 15c (1s. 6d.)  9/16.3.1966

“occupation”, in relation to a unit and to a person, means occupation of the unit by the person as his residence;

“single unit of accommodation” means a dwelling-house constituting a single unit of accommodation;

“strata plan” means—

(a)in relation to land in the State of New South Wales—a plan of subdivision registered under the Conveyancing (Strata Titles) Act, 1961, of that State; and

(b)in relation to land in another State or in a Territory of the Commonwealth—a plan of subdivision registered under a like law of the State or Territory;

“the Act” means the Housing Loans Insurance Act 1965;

“two units of accommodation” means—

(a) a dwelling-house constituting two units of accommodation; or

(b)two dwelling-houses each of which constitutes one unit of accommodation;

“unit” means a unit of accommodation;

“vacant land” includes land on which a structure other than a completed dwelling-house is erected.

(2.) In these Regulations—

(a) a reference to a Schedule by number shall be read as a reference to the Schedule so numbered to these Regulations; and

(b)a reference to a class of insurable loans by number shall be read as a reference to loans of a kind specified in the second column of the First Schedule opposite to that number in the first column of that Schedule.

Classes of insurable loans.

4.—(1.) For the purposes of section 20 of the Act, loans of a kind specified in the second column of the First Schedule opposite to a number specified in the first column of that Schedule are, subject to this regulation, a prescribed class of insurable loans.

(2.) A loan shall not be taken to be of a kind specified in the First Schedule unless it is made to the borrower for the purpose specified in that Schedule in relation to loans of that kind, and for no other purpose.

(3.) Subject to the next succeeding sub-regulation, for the purposes of the First Schedule, a unit of accommodation to which a loan relates—

(a)shall not be taken to be for occupation by the borrower if it is, for the purposes of that Schedule, to be taken to be for occupation by a tenant of the borrower; and

(b)shall be taken to be for occupation by a tenant of the borrower if the borrower is not to occupy the unit continuously as his residence and a person other than the borrower is, with the permission of the borrower, to occupy the unit as his residence either continuously or from time to time, whether or not that person is to be liable to pay rent to the borrower in respect of his occupation of the unit.

(4.) Where a borrower is to occupy as his residence a unit of accommodation to which his loan relates, the unit shall not be taken to be for occupation by a tenant of the borrower by reason only of the fact that—

(a) another person is, with the permission of the borrower, also to occupy the unit as his residence jointly with the borrower; or

(b)another person is, with the permission of the borrower, to occupy part of the unit as his residence, whether or not that person is to occupy the part as a tenant of the borrower and whether or not the person is also to occupy a part of the remainder of the unit jointly with the borrower.

(5.) References in the First Schedule to land shall, unless the contrary intention appears, be read as not including references to a parcel of land designated as a separate parcel of land (whether called a lot, flat or building unit or described in some other manner) on a strata plan.

Approved securities.

5.—(1.) Each of the following classes of insurable loans, that is to say, class 44, class 46, class 48 and class 50 are specified in respect of a second mortgage for the purposes of the definition of “approved security” in sub-section (1.) of section 4 of the Act.

(2.) In the last preceding sub-regulation, “second mortgage” means—

(a)a mortgage registered under a law of a State or Territory of the Commonwealth and having priority subject only to a first legal mortgage registered under that law; or

(b)a mortgage that will, upon registration under a law of a State or Territory of the Commonwealth, take priority subject only to a first legal mortgage or a mortgage that will, upon registration under that law, constitute a first legal mortgage.

Assignment of contract of insurance.

6.—(1.) An assignment of a contract of insurance shall be effected by—

(a)the assignor or the assignee furnishing to the Corporation a memorandum of assignment of the contract, in accordance with, or substantially in accordance with, the form in the Second Schedule, signed by the assignor and the assignee; and

(b)the registration of the memorandum of assignment by the Corporation.

(2.) Subject to the next succeeding sub-regulation, where a memorandum of assignment of a contract of insurance is duly furnished to the Corporation for registration, the Corporation shall—

(a)register the assignment of the contract of insurance by entering particulars of the assignment in a register kept by it for the purpose;

(b)cause the date of registration to be entered on the memorandum of assignment and that memorandum to be signed by the officer of the Corporation who registered the assignment; and

(c) deliver the memorandum of assignment to the assignee or to a person authorized by the assignee to receive it.

(3.) Where a memorandum of assignment of a contract of insurance states that the assignee has entered into an approved agency contract with an approved lender in connexion with the loan to which the contract relates, being an approved agency contract that will come into force upon the assignment taking effect, the Corporation may refuse to register the assignment until the approved agency contract is produced to the Corporation for inspection.

(4.) In the last preceding sub-regulation, “approved agency contract” means an approved agency contract of a kind referred to in paragraph (a) of sub-section (2.) of section 42 of the Act.

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THE SCHEDULES.

FIRST SCHEDULE

KINDS OF INSURABLE LOANS

Regulation 4.

First column

Second column

Number of class of insurable loans

Description of insurable loans included in the class

1

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in vacant land and to construct, or complete the construction of, a single unit of accommodation on the land, the unit being for occupation by the borrower.

2

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in vacant land and to construct, or complete the construction of, a single unit of accommodation on the land, the unit being for occupation by a tenant of the borrower.

3

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in vacant land and to construct, or complete the construction of, two units of accommodation on the land, one of the units being for occupation by the borrower and the other by a tenant of the borrower.

4

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in vacant land and to construct, or complete the construction of, two units of accommodation on the land, each of the units being for occupation by a tenant of the borrower.

5

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in vacant land and to construct, or complete the construction of, more than two units of accommodation on the land, each of the units being for occupation by the borrower or by a tenant of the borrower.

6

A loan made for the purpose of enabling the borrower to construct, or complete the construction of, a single unit of accommodation on vacant land in which the borrower has a prescribed interest, the unit being for occupation by the borrower.

First Schedule—continued

First column

Second column

Number of class of insurable loans

Description of insurable loans included in the class

7

A loan made for the purpose of enabling the borrower to construct, or complete the construction of, a single unit of accommodation on vacant land in which the borrower has a prescribed interest, the unit being for occupation by a tenant of the borrower.

8

A loan made for the purpose of enabling the borrower to construct, or complete the construction of, two units of accommodation on vacant land in which the borrower has a prescribed interest, one of the units being for occupation by the borrower and the other by a tenant of the borrower.

9

A loan made for the purpose of enabling the borrower to construct, or complete the construction of, two units of accommodation on vacant land in which the borrower has a prescribed interest, each of the units being for occupation by a tenant of the borrower.

10

A loan made for the purpose of enabling the borrower to construct, or complete the construction of, more than two units of accommodation on vacant land in which the borrower has a prescribed interest, each of the units being for occupation by the borrower or by a tenant of the borrower.

11

A loan made for the purpose of enabling the borrower to discharge a mortgage over vacant land in which the borrower has a prescribed interest and to construct, or complete the construction of, a single unit of accommodation on the land, the unit being for occupation by the borrower.

12

A loan made for the purpose of enabling the borrower to discharge a mortgage over vacant land in which the borrower has a prescribed interest and to construct, or complete the construction of, a single unit of accommodation on the land, the unit being for occupation by a tenant of the borrower.

13

A loan made for the purpose of enabling the borrower to discharge a mortgage over vacant land in which the borrower has a prescribed interest and to construct, or complete the construction of, two units of accommodation on the land, one of the units being for occupation by the borrower and the other by a tenant of the borrower.

14

A loan made for the purpose of enabling the borrower to discharge a mortgage over vacant land in which the borrower has a prescribed interest and to construct, or complete the construction of, two units of accommodation on the land, each of the units being for occupation by a tenant of the borrower.

15

A loan made for the purpose of enabling the borrower to discharge a mortgage over vacant land in which the borrower has a prescribed interest and to construct, or complete the construction of, more than two units of accommodation on the land, each of the units being for occupation by the borrower or by a tenant of the borrower.

16

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there is a single unit of accommodation that is not, and has not previously been, occupied, the unit being for occupation by the borrower.

17

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there is a single unit of accommodation that is not, and has not previously been, occupied, the unit being for occupation by a tenant of the borrower.

18

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there is a single unit of accommodation that is, or has previously been, occupied, the unit being for occupation by the borrower.

19

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there is a single unit of accommodation that is, or has previously been, occupied, the unit being for occupation by a tenant of the borrower.

First Schedule—continued

First column

Second column

Number of class of insurable loans

Description of insurable loans included in the class

20

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land (being a lot on a strata plan) on which there is a single unit of accommodation that is not, and has not previously been, occupied, the unit being for occupation by the borrower.

21

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land (being a lot on a strata plan) on which there is a single unit of accommodation that is not, and has not previously been, occupied, the unit being for occupation by a tenant of the borrower.

22

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land (being a lot on a strata plan) on which there is a single unit of accommodation that is, or has previously been, occupied, the unit being for occupation by the borrower.

23

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land (being a lot on a strata plan) on which there is a single unit of accommodation that is, or has previously been, occupied, the unit being for occupation by a tenant of the borrower.

24

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there are two units of accommodation that are not, and have not previously been, occupied, one of the units being for occupation by the borrower and the other by a tenant of the borrower.

25

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there are two units of accommodation that are not, and have not previously been, occupied, each of the units being for occupation by a tenant of the borrower.

26

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there are two units of accommodation (being units one of which is or has previously been, or both of which are or have previously been, occupied), one of the units being for occupation by the borrower and the other by a tenant of the borrower.

27

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there are two units of accommodation (being units one of which is or has previously been, or both of which are or have previously been, occupied), each of the units being for occupation by a tenant of the borrower.

28

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there are more than two units of accommodation that are not, and have not previously been, occupied, each of the units being for occupation by the borrower or by a tenant of the borrower.

29

A loan made for the purpose of enabling the borrower to acquire a prescribed interest in land on which there are more than two units of accommodation (being units one of which is or has previously been, or two or more of which are or have previously been, occupied), each of the units being for occupation by the borrower or by a tenant of the borrower.

30

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest, being land on which—

(a)there is a single unit of accommodation occupied by the borrower; or

(b)there are two units of accommodation, one of the units being occupied by the borrower and the other by a tenant of the borrower.

First Schedule—continued

First column

Second column

Number of class of insurable loans

Description of insurable loans included in the class

31

A loan made for the purpose of enabling the borrower to discharge a mortgage over land (being a lot on a strata plan) in which the borrower has a prescribed interest, being land on which there is a single unit of accommodation occupied by the borrower.

32

A loan made for the purpose of enabling the borrower to construct, or complete the construction of, a single unit of accommodation on land in which the borrower has a prescribed interest and on which there is already a single unit of accommodation, one of the units being for occupation by the borrower and the other for occupation by a tenant of the borrower.

33

A loan made for the purpose of enabling the borrower to construct, or complete the construction of, a single unit of accommodation on land in which the borrower has a prescribed interest and on which there is already a single unit of accommodation, each of the units being for occupation by a tenant of the borrower.

34

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest (being land on which there is only a single unit of accommodation) and to construct, or complete the construction of, an additional single unit of accommodation on the land, one of the units being for occupation by the borrower and the other for occupation by a tenant of the borrower.

35

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest (being land on which there is only a single unit of accommodation) and to construct, or complete the construction of, an additional single unit of accommodation on the land, each of the units being for occupation by a tenant of the borrower.

36

A loan made for the purpose of enabling the borrower to construct, or complete the construction of, two units of accommodation or more than two units of accommodation on land in which the borrower has a prescribed interest (being land on which there is already a single unit of accommodation), each of the units being for occupation by the borrower or by a tenant of the borrower.

37

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest (being land on which there is only a single unit of accommodation) and to construct, or complete the construction of, two units of accommodation or more than two units of accommodation on the land in addition to the existing unit, each of the units being for occupation by the borrower or by a tenant of the borrower.

38

A loan made for the purpose of enabling the borrower to construct, or complete the construction of, a single unit of accommodation, two units of accommodation or more than two units of accommodation on land in which the borrower has a prescribed interest (being land on which there are already two units of accommodation or more than two units of accommodation), each of the units being for occupation by the borrower or by a tenant of the borrower.

39

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest (being land on which there are already two units of accommodation or more than two units of accommodation) and to construct, or complete the construction of, a single unit of accommodation, two units of accommodation or more than two units of accommodation on the land in addition to the existing units, each of the units being for occupation by the borrower or by a tenant of the borrower.

First Schedule—continued

First column

Second column

Number of class of insurable loans

Description of insurable loans included in the class

40

A loan made for the purpose of enabling the borrower to alter a dwelling-house constituting a single unit of accommodation on land in which the borrower has a prescribed interest (being the only dwelling-house on the land) in such a manner that the dwelling-house will constitute a greater number of units of accommodation, each of the units being for occupation by the borrower or by a tenant of the borrower.

41

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest and to alter a dwelling-house constituting a single unit of accommodation on the land (being the only dwelling-house on the land) in such a manner that the dwelling-house will constitute a greater number of units of accommodation, each of the units being for occupation by the borrower or by a tenant of the borrower.

42

A loan made for the purpose of enabling the borrower—

(a)to alter a dwelling-house on land in which the borrower has a prescribed interest, being land on which there are two or more dwelling-houses; or

(b)to alter the dwelling-house (being a dwelling-house constituting two units of accommodation or more than two units of accommodation) on land in which the borrower has a prescribed interest,

in such a manner that the dwelling-house being altered will constitute a greater number of units than it constituted before being altered, each of the units on the land being for occupation by the borrower or a tenant of the borrower.

43

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest—being land on which—

(a) there are two or more dwelling-houses; or

(b)there is one dwelling-house constituting two units of accommodation or more than two units of accommodation,

and to alter a dwelling-house or the dwelling-house on the land in such a manner that the dwelling-house being altered will constitute a greater number of units than it constituted before being altered, each of the units on the land being for occupation by the borrower or a tenant of the borrower.

44

A loan made for the purpose of enabling the borrower to alter a dwelling-house on land in which the borrower has a prescribed interest (being a dwelling-house consisting of one unit of accommodation for occupation by the borrower or two units of accommodation one unit of which is for occupation by the borrower and the other by a tenant of the borrower) by adding an additional room to the dwelling-house, but not so that, after the alteration, the dwelling-house will constitute a greater number of units than it constituted before the alteration.

45

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest (being land on which there is a dwelling-house consisting of one unit of accommodation for occupation by the borrower or two units of accommodation one unit of which is for occupation by the borrower and the other by a tenant of the borrower) and to alter the dwelling-house by adding an additional room to the dwelling-house, but not so that, after the alteration, the dwelling-house will constitute a greater number of units than it constituted before the alteration.

First Schedule—continued

First Column

Second Column

Number of class of insurable loans

Description of insurable loans included in the class

46

A loan made for the purpose of enabling the borrower to alter a dwelling-house on land in which the borrower has a prescribed interest (being a dwelling-house consisting of one unit of accommodation for occupation by a tenant of the borrower, two units of accommodation each of which is for occupation by a tenant of the borrower or more than two units of accommodation) by adding an additional room to the dwelling-house, but not so that, after the alteration, the dwelling-house will constitute a greater number of units than it constituted before the alteration.

47

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest (being land on which there is a dwelling-house consisting of one unit of accommodation for occupation by a tenant of the borrower, two units of accommodation each of which is for occupation by a tenant of the borrower or more than two units of accommodation) and to alter the dwelling-house by adding an additional room to the dwelling-house, but not so that, after the alteration, the dwelling-house will constitute a greater number of units than it constituted before the alteration.

48

A loan made for the purpose of enabling the borrower to meet the expenses that the borrower has incurred or will incur in respect of—

(a) the provision or improvement of roads, kerbing, guttering, footpaths or fences in connexion with land in which the borrower has a prescribed interest, being land on which a dwelling-house has been or is being constructed; or

(b)permanent provision for lighting, water-supply, drainage or sewerage in connexion with any such land.

49

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest (being land on which there is a dwelling-house) and to meet the expenses that the borrower has incurred or will incur in respect of—

(a) the provision or improvement of roads, kerbing, guttering, footpaths or fences in connexion with the land; or

(b)permanent provision for lighting, water-supply, drainage or sewerage in connexion with any such land.

50

A loan made for the purpose of enabling the borrower to alter a dwelling-house on land in which the borrower has a prescribed interest in any manner not referred to in a preceding class of insurable loans, including to construct a garage, car-port or outbuilding on any such land.

51

A loan made for the purpose of enabling the borrower to discharge a mortgage over land in which the borrower has a prescribed interest, being land on which a dwelling-house has been constructed, and to alter the dwelling-house in any manner not referred to in a preceding class of insurable loans, including to construct a garage, car-port or outbuilding on any such land.

Second Schedule

Regulation 6.

MEMORANDUM OF ASSIGNMENT.

I (full name, address and occupation of assignor) hereby assign to (full name, address and occupation of assignee) contract of insurance No. entered into by the Housing Loans Insurance Corporation in relation to a loan made by (full name of lender) to (full name of borrower).

The assignee has not entered into an approved agency contract in relation to the loan.

Dated this

  day of , 19 .

Signed by the assignor in

the presence of

Signed by the assignee in

the presence of

                                      

________________

By Authority: A. J. Arthur, Commonwealth Government Printer, Canberra

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