sec.126Limitation on termination of financed contract

sec.126 Limitation on termination of financed contract

The body corporate under a financed contract may terminate the contract if— the body corporate has given the financier for the contract written notice, addressed to the financier at the financier’s address for service, that the body corporate has the right to terminate the contract; and when the notice was given, circumstances existed under which the body corporate had the right to terminate the contract; and at least 21 days have passed since the notice was given. However, the body corporate can not terminate the contract if, under arrangements between the financier and the contractor for the contract, the financier— is acting under the contract in place of the contractor; or has appointed a person as a receiver or receiver and manager for the contract. A financier may take the action mentioned in subsection (2) (a) or (b) only if the financier has previously given written notice to the body corporate of the financier’s intention to take the action. The financier may authorise a person to act for the financier for subsection (2) (a) if— the person is not the contractor or an associate of the contractor; and the body corporate has first approved the person. For deciding whether to approve a person under subsection (4) , the body corporate— must act reasonably in the circumstances and as quickly as practicable; and may have regard only to— the character of the person; and the competence, qualifications and experience of the person. However, the body corporate must not— unreasonably withhold approval of the person; or require or receive a fee or other consideration for approving the person, other than reimbursement for legal or administrative expenses reasonably incurred by the body corporate for the application for its approval. Subsection (2) does not operate to stop the body corporate from terminating the contract for something done or not done after the financier started to act under the subsection. Nothing in this section stops the ending of a financed contract by the mutual agreement of the body corporate, the contractor and the financier. In this section— address for service , for a financier, means the financier’s address for service— for notices given by the body corporate under this division; and stated in a notice given to the body corporate under section 123 or 124 . s 126 sub 2003 No. 6 s 47 amd 2005 No. 14 s 2 sch (sec.126-ssec.1) The body corporate under a financed contract may terminate the contract if— the body corporate has given the financier for the contract written notice, addressed to the financier at the financier’s address for service, that the body corporate has the right to terminate the contract; and when the notice was given, circumstances existed under which the body corporate had the right to terminate the contract; and at least 21 days have passed since the notice was given. (sec.126-ssec.2) However, the body corporate can not terminate the contract if, under arrangements between the financier and the contractor for the contract, the financier— is acting under the contract in place of the contractor; or has appointed a person as a receiver or receiver and manager for the contract. (sec.126-ssec.3) A financier may take the action mentioned in subsection (2) (a) or (b) only if the financier has previously given written notice to the body corporate of the financier’s intention to take the action. (sec.126-ssec.4) The financier may authorise a person to act for the financier for subsection (2) (a) if— the person is not the contractor or an associate of the contractor; and the body corporate has first approved the person. (sec.126-ssec.5) For deciding whether to approve a person under subsection (4) , the body corporate— must act reasonably in the circumstances and as quickly as practicable; and may have regard only to— the character of the person; and the competence, qualifications and experience of the person. (sec.126-ssec.6) However, the body corporate must not— unreasonably withhold approval of the person; or require or receive a fee or other consideration for approving the person, other than reimbursement for legal or administrative expenses reasonably incurred by the body corporate for the application for its approval. (sec.126-ssec.7) Subsection (2) does not operate to stop the body corporate from terminating the contract for something done or not done after the financier started to act under the subsection. (sec.126-ssec.8) Nothing in this section stops the ending of a financed contract by the mutual agreement of the body corporate, the contractor and the financier. (sec.126-ssec.9) In this section— address for service , for a financier, means the financier’s address for service— for notices given by the body corporate under this division; and stated in a notice given to the body corporate under section 123 or 124 .