sec.17NRequirement to pay debts

### sec.17N Requirement to pay debts It is a minimum financial requirement that a licensee must pay a debt owing by the licensee to a contracted party, or a supplier of goods or services, on or before the day the debt becomes due and payable. A debt does not become due and payable under subsection (1) if— before the day the debt becomes due and payable, an adjudicator, court or tribunal decides the debt is not payable by the licensee; or on the day the debt becomes due and payable, the amount of the debt is equal to or less than an amount owed by the creditor to the licensee. Also, if the debt is the subject of a dispute when the debt becomes due and payable— subsection (1) does not apply until the dispute is decided and applies only if the debt is owed by the licensee under the decision; and the debt is due and payable— within the time stated by an adjudicator, court or tribunal; or within the time provided for under an Act; or if subparagraphs (i) and (ii) do not apply—within 28 days after the day the dispute is decided. For subsection (1) , a debt becomes due and payable by a licensee— for an amount payable under a subcontract mentioned in section 67U of the Act —the day provided for under the contract that is no later than 25 business days after submission of the payment claim; or for another contract, including an amount payable to a supplier— within the time required under an Act; or otherwise—on the day worked out under payment terms agreed between the parties to the contract. Subsection (4) applies subject to subsections (2) and (3) . For subsection (3) , a debt is the subject of a dispute if the commission is satisfied that grounds may exist for the licensee to refuse to repay the debt, including, for example, because— it relates to— defective or incomplete work; or a claim that the contractual obligation relating to the debt has not been met; or a proceeding, or a proceeding for an appeal, has started in a court or tribunal in relation to the debt; or an adjudication application has been made in relation to the debt. In this section— adjudicator see the Building Industry Fairness (Security of Payment) Act 2017 , schedule 2 . contracted party , for a building contract, means the party to the contract who is to carry out the building work or construction work the subject of the contract. payment claim see the Building Industry Fairness (Security of Payment) Act 2017 , section 68 . s 17N ins 2019 SL No. 30 s 24 (sec.17N-ssec.1) It is a minimum financial requirement that a licensee must pay a debt owing by the licensee to a contracted party, or a supplier of goods or services, on or before the day the debt becomes due and payable. (sec.17N-ssec.2) A debt does not become due and payable under subsection (1) if— before the day the debt becomes due and payable, an adjudicator, court or tribunal decides the debt is not payable by the licensee; or on the day the debt becomes due and payable, the amount of the debt is equal to or less than an amount owed by the creditor to the licensee. (sec.17N-ssec.3) Also, if the debt is the subject of a dispute when the debt becomes due and payable— subsection (1) does not apply until the dispute is decided and applies only if the debt is owed by the licensee under the decision; and the debt is due and payable— within the time stated by an adjudicator, court or tribunal; or within the time provided for under an Act; or if subparagraphs (i) and (ii) do not apply—within 28 days after the day the dispute is decided. (sec.17N-ssec.4) For subsection (1) , a debt becomes due and payable by a licensee— for an amount payable under a subcontract mentioned in section 67U of the Act —the day provided for under the contract that is no later than 25 business days after submission of the payment claim; or for another contract, including an amount payable to a supplier— within the time required under an Act; or otherwise—on the day worked out under payment terms agreed between the parties to the contract. (sec.17N-ssec.5) Subsection (4) applies subject to subsections (2) and (3) . (sec.17N-ssec.6) For subsection (3) , a debt is the subject of a dispute if the commission is satisfied that grounds may exist for the licensee to refuse to repay the debt, including, for example, because— it relates to— defective or incomplete work; or a claim that the contractual obligation relating to the debt has not been met; or a proceeding, or a proceeding for an appeal, has started in a court or tribunal in relation to the debt; or an adjudication application has been made in relation to the debt. (sec.17N-ssec.7) In this section— adjudicator see the Building Industry Fairness (Security of Payment) Act 2017 , schedule 2 . contracted party , for a building contract, means the party to the contract who is to carry out the building work or construction work the subject of the contract. payment claim see the Building Industry Fairness (Security of Payment) Act 2017 , section 68 . - (a) before the day the debt becomes due and payable, an adjudicator, court or tribunal decides the debt is not payable by the licensee; or - (b) on the day the debt becomes due and payable, the amount of the debt is equal to or less than an amount owed by the creditor to the licensee. - (a) subsection (1) does not apply until the dispute is decided and applies only if the debt is owed by the licensee under the decision; and - (b) the debt is due and payable— (i) within the time stated by an adjudicator, court or tribunal; or (ii) within the time provided for under an Act; or (iii) if subparagraphs (i) and (ii) do not apply—within 28 days after the day the dispute is decided. - (i) within the time stated by an adjudicator, court or tribunal; or - (ii) within the time provided for under an Act; or - (iii) if subparagraphs (i) and (ii) do not apply—within 28 days after the day the dispute is decided. - (i) within the time stated by an adjudicator, court or tribunal; or - (ii) within the time provided for under an Act; or - (iii) if subparagraphs (i) and (ii) do not apply—within 28 days after the day the dispute is decided. - (a) for an amount payable under a subcontract mentioned in section 67U of the Act —the day provided for under the contract that is no later than 25 business days after submission of the payment claim; or - (b) for another contract, including an amount payable to a supplier— (i) within the time required under an Act; or (ii) otherwise—on the day worked out under payment terms agreed between the parties to the contract. - (i) within the time required under an Act; or - (ii) otherwise—on the day worked out under payment terms agreed between the parties to the contract. - (i) within the time required under an Act; or - (ii) otherwise—on the day worked out under payment terms agreed between the parties to the contract. - (a) it relates to— (i) defective or incomplete work; or (ii) a claim that the contractual obligation relating to the debt has not been met; or - (i) defective or incomplete work; or - (ii) a claim that the contractual obligation relating to the debt has not been met; or - (b) a proceeding, or a proceeding for an appeal, has started in a court or tribunal in relation to the debt; or - (c) an adjudication application has been made in relation to the debt. - (i) defective or incomplete work; or - (ii) a claim that the contractual obligation relating to the debt has not been met; or