sec.20All payments to subcontractor beneficiaries to be paid from project trust account

### sec.20 All payments to subcontractor beneficiaries to be paid from project trust account The contracted party for a project trust contract may only pay an amount to a subcontractor beneficiary of the project trust— from the project trust account; and by depositing the amount into the account of a financial institution nominated by the beneficiary. Maximum penalty—200 penalty units or 1 year’s imprisonment. To remove any doubt, it is declared that the obligation to pay an amount from the project trust account applies whether or not the amount is held in the account when it is to be paid. See section 51 about covering shortfalls. The account nominated by the subcontractor beneficiary under subsection (1) (b) must be— controlled by the beneficiary; and if the beneficiary is also required to establish a project trust for its subcontract—the account for the project trust for the subcontract. This section does not apply to— a retention amount withheld from payment to a subcontractor beneficiary if the amount is deposited into a retention trust account of which the subcontractor is, or will be, a beneficiary; and a retention amount to be released to a subcontractor beneficiary from a retention trust account. s 20 sub 2020 No. 24 s 63 amd 2024 No. 14 s 31 (sec.20-ssec.1) The contracted party for a project trust contract may only pay an amount to a subcontractor beneficiary of the project trust— from the project trust account; and by depositing the amount into the account of a financial institution nominated by the beneficiary. Maximum penalty—200 penalty units or 1 year’s imprisonment. (sec.20-ssec.2) To remove any doubt, it is declared that the obligation to pay an amount from the project trust account applies whether or not the amount is held in the account when it is to be paid. See section 51 about covering shortfalls. (sec.20-ssec.3) The account nominated by the subcontractor beneficiary under subsection (1) (b) must be— controlled by the beneficiary; and if the beneficiary is also required to establish a project trust for its subcontract—the account for the project trust for the subcontract. (sec.20-ssec.4) This section does not apply to— a retention amount withheld from payment to a subcontractor beneficiary if the amount is deposited into a retention trust account of which the subcontractor is, or will be, a beneficiary; and a retention amount to be released to a subcontractor beneficiary from a retention trust account. - (a) from the project trust account; and - (b) by depositing the amount into the account of a financial institution nominated by the beneficiary. - (a) controlled by the beneficiary; and - (b) if the beneficiary is also required to establish a project trust for its subcontract—the account for the project trust for the subcontract. - (a) a retention amount withheld from payment to a subcontractor beneficiary if the amount is deposited into a retention trust account of which the subcontractor is, or will be, a beneficiary; and - (b) a retention amount to be released to a subcontractor beneficiary from a retention trust account.