33Amount of deposit or deed of financial security required

33 Amount of deposit or deed of financial security required

(1) For the purposes of paragraph 29(1)(f), the amount required, in relation to an applicant, is 10 percent of the sum of the starting prices of each of the applicant’s preferred lots nominated in the preference nomination form.

Note: If an applicant gives the ACMA a revised preference nomination form under section 32, the amount required does not increase or decrease proportionally to any change in the sum of the starting prices of the applicant’s preferred lots.

(2) If an applicant pays a deposit or gives a deed of financial security (or both) for an amount less than the amount under subsection (1), the ACMA must, in writing, notify the applicant that: (a) the applicant has paid a deposit or given a deed of financial security (or both), whichever the case may be, for less than the amount under subsection (1); and (b) the applicant must, before the application deadline or no later than 3 working days after the date of the notice (whichever is the later), pay a deposit or give a deed of financial security (or both) for the remainder of the amount under subsection (1). (3) If the applicant does not comply with the notice given under subsection (2), the applicant’s preferred lots are to be worked out by the ACMA removing from the applicant’s preference nomination form the lot or lots with the lowest starting price until the remaining preferred lots result in an amount under subsection (1) that is equal to, or less than, the deposit paid or the deed of financial security given (or both).

Note 1: The removal of lots is not specific or confined to a single band. If an applicant has nominated lots in multiple bands, the lot with the lowest starting price will be the first removed under this subsection, regardless of the band the lot is in.

Note 2: See subsection (13) for dealing with lots with the same starting price.

(4) If, after the ACMA removes lots from an applicant’s preference nomination form in accordance with subsection (3), no lots remain, the applicant is taken to have withdrawn its application. (5) The ACMA must tell an applicant in writing if: (a) the applicant has had its preferred lots worked out in accordance with subsection (3); or (b) the applicant is taken to have withdrawn its application under subsection (4). (6) A deed of financial security must be executed by an Australian-owned authorised deposit-taking institution (as defined in the Banking Act 1959) which is a bank. (7) If a deed of financial security is executed by a person acting under a power of attorney for a body corporate, the applicant must give the ACMA a copy of the power of attorney with the deed. (8) If a deed of financial security is given to the ACMA by email or fax before the application deadline, the original deed must be received by the ACMA no later than 3 working days after the application deadline (or, if the ACMA agrees to a later time, the agreed time) for the deed to be taken to have been given to the ACMA. (9) An applicant is taken to have withdrawn its application if the ACMA is not satisfied that the person executing a deed of financial security is a person mentioned in subsection (6). (10) The ACMA must tell an applicant in writing if it is taken to have withdrawn its application under subsection (9). (11) If: (a) the ACMA removes a lot from an applicant’s preference nomination form in accordance with subsection (3); and (b) the applicant has given the ACMA a revised preference nomination form under section 32; and (c) the lot is included in the revised preference nomination form; and (d) the lots nominated in the revised preference nomination form are the applicant’s preferred lots; the lot is taken to be removed from the applicant’s revised preference nomination form. (12) The ACMA must tell an applicant in writing if a lot is taken to be removed from a revised preference nomination form under subsection (11). (13) For the purposes of subsection (3), if: (a) two or more lots in a preference nomination form have the same starting price; (b) no other lot remaining in the preference nomination form has a lower starting price; the ACMA may select any of those lots to be the lot with the lowest starting price.