9Ingoing contributions

9 Ingoing contributions

(1)  An ingoing contribution paid to an operator by any person is to be held in trust in an account with an authorised deposit-taking institution or in a form of investment in which trustees are authorised by law to invest trust money until –

(a) the resident enters into occupation of any residential premises; or

(b) it becomes apparent that the resident will not enter into occupation of any residential premises.

(2)  If the resident does not enter into occupation of any residential premises, any question affecting an entitlement to, or disposition of, the ingoing contribution is to be determined by reference to the residence contract, subject to the following qualifications:

(a) if the resident's failure to enter into occupation is attributable to a failure on the part of the operator to carry out contractual obligations, interest and accretions arising from investment of the ingoing contribution must be paid to the resident;

(b) in any other case, the operator is entitled to retain any such interest and accretions.

(3)  Subsection (2) does not affect any entitlement to rescind a residence contract that a resident may have under section 6(7) .

(4)  If a provision of this section is contravened, the operator is guilty of an offence.

Penalty:  Fine not exceeding 350 penalty units.