62FRequirements for fidelity fund cover for residential building work done under contract

#### 62F Requirements for fidelity fund cover for residential building work done under contract 62F Requirements for fidelity fund cover for residential building work done under contract > > (1) Despite any other provision of this Part, the fidelity fund cover in relation to residential building work that is required by section 92 of the Act, as permitted by section 104B of the Act, may be provided by means of— > > > > > (a) one contract (a construction period fidelity fund contract) that provides cover (by means of a fidelity fund scheme) against— > > > > > > > (i) the risk specified in section 99 (1) (a) of the Act, and > > > > > > > (ii) the risk specified in section 99 (1) (b) of the Act in a case of non-completion of the residential building work, and > > > > > (b) another contract (a warranty period fidelity fund contract) that provides cover (by means of a fidelity fund scheme) against the risk specified in section 99 (1) (b) of the Act. > > > (2) Alternatively, the cover required by section 92 of the Act may be provided by means of any combination of the following contracts (that is, by one contract from paragraph (a) and one contract from paragraph (b))— > > > > > (a) a construction period insurance contract referred to in section 99 (4) (a) of the Act, a construction period fidelity fund contract referred to in subclause (1) (a) or a construction period alternative indemnity contract referred to in clause 62ZH (1) (a), and > > > > > (b) a warranty period insurance contract referred to in section 99 (4) (b) of the Act, a warranty period fidelity fund contract referred to in subclause (1) (b) or a warranty period alternative indemnity contract referred to in clause 62ZH (1) (b). > > > (3) A warranty period fidelity fund contract is not required to, but may, cover loss that arises from a breach of a statutory warranty in a case of non-completion of residential building work. > > > (4) A provider is not required to, but may, provide both a construction period fidelity fund contract and a warranty period fidelity fund contract in relation to the same residential building work. > > > (5) Nothing in this clause requires a person obtaining cover for the purposes of section 92 of the Act, as permitted by section 104B of the Act, and who obtains fidelity fund cover for that purpose by entering into 2 contracts of fidelity fund cover as specified by this clause, to enter into both contracts with the same provider. > > **Parts 6B (cll 62A–62ZZC):** Ins 2017 (705), Sch 1 \[18\].