17Corporation to carry on certain insurance business

17 Corporation to carry on certain insurance business

(1) The Corporation shall carry on the business of insurance as provided by this Act. (2) Subject to this Act, the Corporation is empowered to enter into a contract of insurance: (a) insuring a lender against the whole or part of any loss in respect of an insurable loan made, or proposed to be made, by the lender; or (b) insuring an approved dealer against the whole or part of any loss of a kind specified in the regulations, being loss that is directly or indirectly connected with one or more approved securities relating to negotiable mortgage securities issued, or proposed to be issued, by the dealer. (2A) The Corporation shall not enter into a contract of insurance under paragraph (2)(a) unless: (a) the lender is an approved lender; or (b) an agency contract is in force in relation to the loan in respect of which the contract of insurance is to be entered into. (3) The loss in respect of which a lender may be insured under a contract of insurance entered into by the Corporation includes: (a) loss of moneys constituting the loan; (b) loss of interest and other charges on or in relation to the loan; and (c) any other loss arising from any default in relation to the loan. (3A) Subsection (3) shall not be taken to limit the generality of paragraph (2)(b). (3B) Subject to this Act, the Corporation is empowered to enter, as the agent of an insurer, into a contract of insurance insuring a person against the whole or part of any loss arising from the person having to perform obligations of a mortgagor under an approved security over a prescribed interest in land. (3C) The Minister may, from time to time, by instrument in writing, direct the Corporation to enter, under subsection (2), into contracts in respect of loans included in a class of loans specified in the direction, being loans: (a) made for purposes that accord with the policies of the Government of the Commonwealth in relation to housing; and (b) in respect of which the Corporation would not so enter into contracts in the ordinary course of business, and, subject to subsection (2A), the Corporation shall comply with the direction. (3D) The Minister shall not give a direction under subsection (3C) unless he has given the Corporation a reasonable opportunity to furnish advice to him on the matter and has had regard to any advice so furnished. (3E) The Minister shall cause a copy of a direction given under subsection (3C) to be laid before each House of the Parliament within 15 sitting days of that House after the giving of the direction. (4) Subject to this Act, the terms and conditions to be included in contracts of insurance to be entered into by the Corporation shall be such as are determined by the Corporation. (5) A contract of insurance that is entered into with a lender who is not an approved lender may be cancelled by the Corporation if, at any time after the contract is entered into, an agency contract is not in force in relation to the loan to which that contract of insurance relates. (6) The Corporation shall ensure as far as practicable that a substantial part of its business relates to loans made for purposes of enabling persons to acquire or construct residential accommodation.