sec.20CInsufficient amounts available for payments

### sec.20C Insufficient amounts available for payments This section applies if— a project trust is established for a contract; and the contracted party is liable to pay 2 or more subcontractor beneficiaries (each a claimant ) an amount at the same time; and the total amount held in the project trust account is insufficient to satisfy in full all of the amounts liable to be paid to the claimants; and when an amount liable to be paid to a claimant is due to be paid, the contracted party has not complied with its obligation under section 51 to cover the insufficient amount. The amount to be paid by the contracted party to each claimant is to be reduced in proportion to the amounts liable to be paid to each. If one subcontractor beneficiary is to be paid $50,000 and another subcontractor beneficiary is to be paid $30,000 but only $40,000 is available, the beneficiaries are to be paid $25,000 and $15,000 respectively. If the contracted party makes a payment complying with subsection (2) , the party must, using an approved way, inform the commissioner of the payment as soon as practicable after making it. Maximum penalty—100 penalty units. While there continues to be an insufficient amount held in the project trust account, the contracted party must not pay a subcontractor beneficiary unless the payment complies with subsection (2) . Maximum penalty—100 penalty units or 1 year’s imprisonment. Nothing in this section relieves the contracted party of the party’s liability to pay in full the amounts the subcontractor beneficiaries are entitled to be paid in connection with project trust subcontracts. s 20C ins 2020 No. 24 s 63 amd 2024 No. 14 s 33 (sec.20C-ssec.1) This section applies if— a project trust is established for a contract; and the contracted party is liable to pay 2 or more subcontractor beneficiaries (each a claimant ) an amount at the same time; and the total amount held in the project trust account is insufficient to satisfy in full all of the amounts liable to be paid to the claimants; and when an amount liable to be paid to a claimant is due to be paid, the contracted party has not complied with its obligation under section 51 to cover the insufficient amount. (sec.20C-ssec.2) The amount to be paid by the contracted party to each claimant is to be reduced in proportion to the amounts liable to be paid to each. If one subcontractor beneficiary is to be paid $50,000 and another subcontractor beneficiary is to be paid $30,000 but only $40,000 is available, the beneficiaries are to be paid $25,000 and $15,000 respectively. (sec.20C-ssec.3) If the contracted party makes a payment complying with subsection (2) , the party must, using an approved way, inform the commissioner of the payment as soon as practicable after making it. Maximum penalty—100 penalty units. (sec.20C-ssec.4) While there continues to be an insufficient amount held in the project trust account, the contracted party must not pay a subcontractor beneficiary unless the payment complies with subsection (2) . Maximum penalty—100 penalty units or 1 year’s imprisonment. (sec.20C-ssec.5) Nothing in this section relieves the contracted party of the party’s liability to pay in full the amounts the subcontractor beneficiaries are entitled to be paid in connection with project trust subcontracts. - (a) a project trust is established for a contract; and - (b) the contracted party is liable to pay 2 or more subcontractor beneficiaries (each a claimant ) an amount at the same time; and - (c) the total amount held in the project trust account is insufficient to satisfy in full all of the amounts liable to be paid to the claimants; and - (d) when an amount liable to be paid to a claimant is due to be paid, the contracted party has not complied with its obligation under section 51 to cover the insufficient amount.