sec.38Annual review of risk category allocation

sec.38 Annual review of risk category allocation

This section applies if— an authority is allocated to a risk category; and the estimated rehabilitation cost for the authority is equal to or more than the prescribed ERC amount. Also, this section applies if— an authority is allocated to a risk category; and the estimated rehabilitation cost for the authority is equal to or more than $100,000 but less than the prescribed ERC amount; and the scheme manager has given the holder an election notice for the authority; and the election notice is in effect. The scheme manager must, within 30 business days before the annual review allocation day for the authority— review the risk category to which the authority is allocated; and decide to confirm or change the risk category to which the authority is allocated (the annual review allocation ). However, subsection (3) does not apply to an annual review allocation day that is within 9 months after— the initial allocation day for the authority; or the day a changed holder allocation takes effect for the authority; or the day a change to the annual review allocation day takes effect. In making the annual review allocation, the scheme manager— must consider— the scheme manager’s opinion of the probability mentioned in section 27 (2) (a) (i) ; and submissions made under section 39 ; and the scheme guidelines; and may consider any other matter the scheme manager considers relevant. In forming an opinion under subsection (5) (a) (i) , the scheme manager— must consider— the financial soundness of the holder; and the scheme guidelines; and may consider— the characteristics of a resource project to which the authority relates; and any other matter the scheme manager considers relevant to forming the opinion. In considering the financial soundness of the holder, the scheme manager may consider the financial soundness of a parent corporation of the holder. If there is more than 1 holder, the scheme manager— may consider the financial soundness of any or all of the holders; and in considering the financial soundness of any or all of the holders, may consider the financial soundness of a parent corporation of any or all of the holders; and must assign the authority to only 1 of the holders (the relevant holder of the authority). s 38 amd 2020 No. 26 s 118 sch 1 ; 2024 No. 33 s 108 (sec.38-ssec.1) This section applies if— an authority is allocated to a risk category; and the estimated rehabilitation cost for the authority is equal to or more than the prescribed ERC amount. (sec.38-ssec.2) Also, this section applies if— an authority is allocated to a risk category; and the estimated rehabilitation cost for the authority is equal to or more than $100,000 but less than the prescribed ERC amount; and the scheme manager has given the holder an election notice for the authority; and the election notice is in effect. (sec.38-ssec.3) The scheme manager must, within 30 business days before the annual review allocation day for the authority— review the risk category to which the authority is allocated; and decide to confirm or change the risk category to which the authority is allocated (the annual review allocation ). (sec.38-ssec.4) However, subsection (3) does not apply to an annual review allocation day that is within 9 months after— the initial allocation day for the authority; or the day a changed holder allocation takes effect for the authority; or the day a change to the annual review allocation day takes effect. (sec.38-ssec.5) In making the annual review allocation, the scheme manager— must consider— the scheme manager’s opinion of the probability mentioned in section 27 (2) (a) (i) ; and submissions made under section 39 ; and the scheme guidelines; and may consider any other matter the scheme manager considers relevant. (sec.38-ssec.6) In forming an opinion under subsection (5) (a) (i) , the scheme manager— must consider— the financial soundness of the holder; and the scheme guidelines; and may consider— the characteristics of a resource project to which the authority relates; and any other matter the scheme manager considers relevant to forming the opinion. (sec.38-ssec.7) In considering the financial soundness of the holder, the scheme manager may consider the financial soundness of a parent corporation of the holder. (sec.38-ssec.8) If there is more than 1 holder, the scheme manager— may consider the financial soundness of any or all of the holders; and in considering the financial soundness of any or all of the holders, may consider the financial soundness of a parent corporation of any or all of the holders; and must assign the authority to only 1 of the holders (the relevant holder of the authority).