New South Wales Consolidated Acts

CONTRACTORS DEBTS ACT 1997 - SECT 10

10 Priority of assignments under Act

(1) The priority of assignments under this Act is to be determined by the order of service of notices of claim on the principal.

(2) All notices of claim in respect of debts owed by the same defaulting contractor that are served on the principal within the period of 7 days after the first notice in respect of the defaulting contractor is served on the principal are taken to be served at the same time and, accordingly, take equal priority.

(3) The principal is not to make any payment to an unpaid person who serves a notice of claim until that 7 day period has elapsed (despite section 9).

(4) If assignments take equal priority, the principal is to make the payments by distributing the money payable between the unpaid persons who have equal priority pro rata in proportion to the amount of their respective certified debts.

(5) The principal must continue to make those payments to each unpaid person until whichever of the following first occurs:

(a) the principal receives a discharge notice, or discharge notices, indicating that each certified debt has been fully discharged, or

(b) the payments are no longer payable under the contract.