46Withholding payments at request of entity \[see Note 3\]

46 Withholding payments at request of entity [see Note 3]

(1) This section applies if:

(a) a payment right has been granted to an entity; and

(b) the entity has applied for a dairy‑type grant.

(2) If this section applies, the entity may ask the DAA, in writing, to withhold further DSAP payments that become payable to the entity in respect of the payment right until the application for the dairy‑type grant is determined.

(3) If the DAA receives a request under subsection (2), it must withhold DSAP payments that become due to the entity after the DAA receives the request until:

(a) the DAA receives notice that the entity’s application for a dairy‑type grant has been rejected; or

(b) the entity tells the DAA, in writing, that it is no longer pursuing the dairy‑type grant; or

(c) the DAA receives notice that the entity’s claim for the dairy‑type grant has been determined; or

(e) if the notice related to an application for a dairy‑type grant and the entity does not lodge a claim for a dairy‑type grant before 1 December 2004 — 1 December 2004 .

(4) If the entity’s payment right is cancelled under section 38, the entity’s entitlement to the withheld payments is cancelled.

(5) If the entity’s application or claim for a dairy‑type grant is rejected, or the entity tells the DAA, in writing, that it is no longer pursuing the grant:

(a) the DSAP payments that have been withheld are due to be paid to the entity before the end of the 10th business day after the DAA receives the notice; and

(b) DSAP payments that become payable to the entity after the DAA receives the notice are payable in accordance with section 44.

(7) If paragraph (3) (e) applies:

(a) the DSAP payments that have been withheld are due to be paid to the entity before the end of the 10th business day after 30 September 2008; and