New South Wales Consolidated Acts

CONTRACTORS DEBTS ACT 1997 - SECT 13

13 Unpaid person required to provide discharge notice

(1) If a defaulting contractor or principal makes a payment to an unpaid person in partial or full discharge of the debt owed to the unpaid person, the unpaid person must, on the request of the person making the payment, give that person a discharge notice in respect of the payment.

(2) A discharge notice is a notice in an approved form that acknowledges the payment of the amount paid and is signed by the unpaid person.

(3) If the unpaid person does not give the notice within 7 days of such a payment and request, the unpaid person is to forfeit and pay to the person who made the payment a sum equal to the amount paid. The penalty is recoverable by the person who made the payment as a debt in a court of competent jurisdiction.