53Managing places where purchase does not settle

53  Managing places where purchase does not settle

 (1) Subsections (2) to (3) apply where Housing Australia has committed or used a place, but:

 (a) the participating lender withdraws their mortgage approval prior to settlement of the purchase of the relevant property and Housing Australia is satisfied that the participating lender, or another participating lender, will not enter into a mortgage over the relevant property within a reasonable time; or

 (b) the settlement fails for any other reason and Housing Australia is satisfied that settlement will not proceed within a reasonable time.

 (2) Following a withdrawal or failure mentioned in subsection (1), Housing Australia:

 (a) must not approve an application to enter into an arrangement in respect of that place; and

 (b) if the approval has already been granted, but an arrangement has not yet been entered into—must revoke the approval; and

 (c) must not enter into an arrangement in respect of the place (whether or not an approval has already been granted); and

 (d) if an arrangement has already been entered into—must terminate the arrangement.

 (3) Housing Australia may, on or after the date of the withdrawal or failure mentioned in subsection (1), commit or use the place for an arrangement in respect of property in any participating State or a Territory at any time between 1 March in the financial year in which the withdrawal or failure occurred and the end of that financial year.

Division 3—Administering the program