sec.19All payments from contracting party to be deposited in project trust account

### sec.19 All payments from contracting party to be deposited in project trust account This section applies to any of the following amounts paid by the contracting party to the contracted party in connection with a project trust contract— an amount paid in accordance with the terms of the contract; an amount paid because the contracting party is liable under section 77 to pay the amount to the contracted party in connection with the contract; an amount paid under chapter 3 , part 4 because of an adjudication of a disputed progress payment relating to the contract; an amount paid because of a final and binding dispute resolution process relating to the contract; an amount paid because of a court order relating to the contract; an amount, paid for any other reason, that reduces the unpaid amount of the contract price for the contract. The contracting party must deposit the amount into the project trust account for the contract (the deposit obligation ) unless— the amount was due to be paid before the trust was established; or the amount is paid into court; or the amount is to be withheld because of a payment withholding request given to the contracting party under section 97B ; or the amount is paid directly to a person under chapter 4 in connection with a subcontractor’s charge; or the contracting party has a reasonable excuse for failing to deposit the amount into the account. Maximum penalty—200 penalty units. Once the amount is deposited into the project trust account, the deposit is taken to be a payment made by the contracting party to the contracted party and discharges the contracting party’s liability to pay that amount to the contracted party. If an amount is paid to the contracted party or its agent in contravention of the deposit obligation, the contracted party must deposit the amount into the project trust account as soon as practicable after receiving the amount. Maximum penalty for subsection (4) —200 penalty units or 2 years imprisonment. s 19 amd 2018 No. 17 s 176G sub 2020 No. 24 s 63 amd 2024 No. 14 s 29 (sec.19-ssec.1) This section applies to any of the following amounts paid by the contracting party to the contracted party in connection with a project trust contract— an amount paid in accordance with the terms of the contract; an amount paid because the contracting party is liable under section 77 to pay the amount to the contracted party in connection with the contract; an amount paid under chapter 3 , part 4 because of an adjudication of a disputed progress payment relating to the contract; an amount paid because of a final and binding dispute resolution process relating to the contract; an amount paid because of a court order relating to the contract; an amount, paid for any other reason, that reduces the unpaid amount of the contract price for the contract. (sec.19-ssec.2) The contracting party must deposit the amount into the project trust account for the contract (the deposit obligation ) unless— the amount was due to be paid before the trust was established; or the amount is paid into court; or the amount is to be withheld because of a payment withholding request given to the contracting party under section 97B ; or the amount is paid directly to a person under chapter 4 in connection with a subcontractor’s charge; or the contracting party has a reasonable excuse for failing to deposit the amount into the account. Maximum penalty—200 penalty units. (sec.19-ssec.3) Once the amount is deposited into the project trust account, the deposit is taken to be a payment made by the contracting party to the contracted party and discharges the contracting party’s liability to pay that amount to the contracted party. (sec.19-ssec.4) If an amount is paid to the contracted party or its agent in contravention of the deposit obligation, the contracted party must deposit the amount into the project trust account as soon as practicable after receiving the amount. Maximum penalty for subsection (4) —200 penalty units or 2 years imprisonment. - (a) an amount paid in accordance with the terms of the contract; - (b) an amount paid because the contracting party is liable under section 77 to pay the amount to the contracted party in connection with the contract; - (c) an amount paid under chapter 3 , part 4 because of an adjudication of a disputed progress payment relating to the contract; - (d) an amount paid because of a final and binding dispute resolution process relating to the contract; - (e) an amount paid because of a court order relating to the contract; - (f) an amount, paid for any other reason, that reduces the unpaid amount of the contract price for the contract. - (a) the amount was due to be paid before the trust was established; or - (b) the amount is paid into court; or - (c) the amount is to be withheld because of a payment withholding request given to the contracting party under section 97B ; or - (d) the amount is paid directly to a person under chapter 4 in connection with a subcontractor’s charge; or - (e) the contracting party has a reasonable excuse for failing to deposit the amount into the account.