sec.40Notice of retention trust before withholding retention amount

### sec.40 Notice of retention trust before withholding retention amount If, under section 32 , a retention trust is required for a retention amount withheld from payment under a contract, the contracting party must give the contracted party a notice about the use of a retention trust ( notice of retention trust ) as required by this section. Maximum penalty—200 penalty units or 1 year’s imprisonment. The notice of retention trust must— be in writing; and include a statement that a retention trust will be used for withholding retention amounts under the contract; and include the information prescribed by regulation. The notice of retention trust must be given to the contracted party before withholding the retention amount. However, if the retention trust account was not opened before the retention trust is required under section 32 , the notice of retention trust must be given to the contracted party within 5 business days after opening the account. s 40 sub 2020 No. 24 s 63 (sec.40-ssec.1) If, under section 32 , a retention trust is required for a retention amount withheld from payment under a contract, the contracting party must give the contracted party a notice about the use of a retention trust ( notice of retention trust ) as required by this section. Maximum penalty—200 penalty units or 1 year’s imprisonment. (sec.40-ssec.2) The notice of retention trust must— be in writing; and include a statement that a retention trust will be used for withholding retention amounts under the contract; and include the information prescribed by regulation. (sec.40-ssec.3) The notice of retention trust must be given to the contracted party before withholding the retention amount. (sec.40-ssec.4) However, if the retention trust account was not opened before the retention trust is required under section 32 , the notice of retention trust must be given to the contracted party within 5 business days after opening the account. - (a) be in writing; and - (b) include a statement that a retention trust will be used for withholding retention amounts under the contract; and - (c) include the information prescribed by regulation.