Commonwealth Consolidated Acts

DEFENCE SERVICE HOMES ACT 1918 - SECT 38E

             (1)  This section applies where:

                     (a)  the Commonwealth has undertaken insurance under section 38C in relation to a dwelling-house only because:

                              (i)  the Corporation proposed to make a Corporation advance in respect of a person; or

                             (ii)  a person has applied for a certificate of entitlement in relation to that dwelling-house; or

                            (iii)  a person is an eligible person or an eligible veteran; and

                     (b)  the person dies or any of the following things happen otherwise than because the person has disposed of his or her interest in the dwelling-house:

                              (i)  the Corporation no longer proposes to make the Corporation advance;

                             (ii)  the Secretary refuses to issue the certificate of entitlement to the person;

                            (iii)  the Bank refuses to make a subsidised advance to the person in relation to the dwelling-house;

                            (iv)  the certificate of entitlement issued to the person ceases to have effect under the Bank agreement.

             (2)  Where this section applies:

                     (a)  the insurance undertaken in relation to the dwelling-house does not cease to have effect because of the death of the person or the happening of any of the things referred to in subparagraph (1)(b)(i), (ii), (iii) or (iv); and

                     (b)  unless the insurance has already ceased to have effect for some other reason, the Secretary shall give reasonable notice in writing to each person having an interest in the dwelling-house that the insurance will cease to have effect on a day specified in the notice.

             (3)  Where the Secretary gives a notice under paragraph (2)(b), the insurance ceases to have effect on the day specified in the notice unless it has already ceased to have effect.

             (4)  If this section applies where an eligible person dies, and the person is survived by a widow or widower, the Secretary must not give a notice under paragraph (2)(b) in relation to the dwelling-house unless the Secretary is satisfied that the widow or widower is not an eligible person.

             (5)  If this section applies where an eligible veteran dies, and he or she is survived by a widow or widower (within the meaning of subsection 5E(1) of the Veterans' Entitlements Act 1986 ), the Secretary must not give a notice under paragraph (2)(b) in relation to the dwelling-house.