Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 7.5.71

Limits of compensation

             (1)  The total amounts paid out of the Fund in connection with claims that:

                     (a)  because of a dealer having become insolvent on a particular day, this Subdivision entitles persons to make; and

                     (b)  are allowed by the SEGC;

must not exceed an amount equal to 15% of the minimum amount of the Fund as at the end of that day.

             (2)  In determining the total of the amounts paid out of the Fund in connection with claims in respect of property (the main property ):

                     (a)  an amount paid out of the Fund in connection with any of the claims must be disregarded, to the extent to which it is repaid to the Fund; and

                     (b)  if, because of the exercise of a right or remedy in relation to property that is, or is included in, the main property, being a right or remedy of the claimant, or of any of the claimants, to which the SEGC is subrogated, money or other property has been recovered by, or on behalf, of the SEGC--so much of the amount, or of the total of the amounts, paid out of the Fund in connection with any of the claims as does not exceed:

                              (i)  the amount of that money; or

                             (ii)  the value of so much (if any) of that other property as has not been, and is not required to be, supplied under subregulation 7.5.64(2) in respect of any of the claims;

                            must be disregarded.

             (3)  To ensure compliance with subregulation (1) in relation to particular claims:

                     (a)  the SEGC may, in relation to each of those claims, determine in writing an amount to be the maximum amount in relation to the claim; and

                     (b)  if paragraph (a) empowers the SEGC to make determinations in relation to the respective claims of 2 or more claimants--the SEGC must, in making those determinations:

                              (i)  take into account, in relation to each of those claimants, any money or other property that the claimant has received, or is likely to receive, from sources other than the Fund as compensation for property to which the claimant's claim relates; and

                             (ii)  ensure, as far as practicable, that the proportion of the property to which a claim relates that is represented by the money and other property received from all sources (including the Fund) as compensation for property to which the claim relates is, as nearly as practicable, the same for each of those claimants.

             (4)  If a determination of an amount as the maximum amount in relation to a claim is in force under subregulation (3), the amount, or the total of the amounts, paid out of the Fund in connection with the claim must not exceed the amount that has been determined.



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