40Key-money on assignment prohibited

#### 40 Key-money on assignment prohibited 40 Key-money on assignment prohibited > > (1) A person must not, as lessor or on behalf of the lessor, seek or accept the payment of key-money in connection with the granting of consent to the assignment of a retail shop lease and any provision of a retail shop lease is void to the extent that it requires or has the effect of requiring the payment of key-money in connection with the granting of consent to the assignment of the lease. > > > (2) If a person contravenes this section— > > > > > (a) the person is guilty of an offence and liable to a penalty not exceeding 100 penalty units, and > > > > > (b) (whether or not the person is convicted of an offence under paragraph (a)) the lessee is entitled to recover from the lessor as a debt any payment made or the value of any benefit conferred by the lessee and accepted by or on behalf of the lessor in contravention of this section. > > > (3) This section does not preclude any right of the lessor to require payment of a reasonable sum in respect of any legal or other expenses incurred in connection with such a consent. The lessee is entitled to have those expenses substantiated by the lessor before making such a payment. > > > (4) This section does not prevent a lessor from securing performance of the assignee’s obligations under the assigned lease by requiring the provision of a security bond or other bond or a guarantee from the assignee or any other person. > > Note. > > This section and section 39 do not prevent the lessor and a proposed assignee entering into a new lease of the retail shop as an alternative to an assignment of the existing lease. > > **s 40:** Am 2005 No 90, Sch 1 \[47\].