Commonwealth Consolidated Acts

DEFENCE SERVICE HOMES ACT 1918 - SECT 38EA

             (1)  This section applies where:

                     (a)  the Commonwealth has undertaken insurance under section 38CA in relation to a house; and

                     (b)  the entitled person dies before obtaining a subsidised loan in relation to the house or any of the following things happen;

                              (i)  the Bank refuses to make a subsidised loan to the person in relation to the house;

                             (ii)  the entitlement certificate issued to the person is cancelled;

                            (iii)  subsidy does not become payable under section 20 of the Home Loans Assistance Act on a loan made in relation to the house;

                            (iv)  subsidy stops being payable on such a loan under paragraph 29(d) or (e) of that Act.

             (2)  Where this section applies:

                     (a)  the insurance undertaken in relation to the house does not cease to have effect on the death of the entitled person or the happening of anything mentioned 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 must give reasonable notice in writing to each person having an interest in the 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)  Where this section applies because of the death of an entitled person 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 house unless satisfied that a subsidised loan will not be, or is unlikely to be, made to the widow or widower in respect of that house.

             (5)  In this section:

"house , entitlement certificate , entitled person , subsidised loan and the Bank" have the same respective meanings as in the Home Loans Assistance Act.