(1) A proprietor of a
lot in a scheme shall ensure that the lot is not used for an activity if the
proprietor has been notified in writing by the strata company for the scheme
that the strata company cannot obtain insurance cover for the building, or
part of it, on reasonable terms because that activity is being carried on on
(2) The proprietor of
a lot in a scheme shall comply with a notice given to the proprietor by the
strata company for the scheme to carry out any work on the building on the
lot, being work specified in the notice, if the notice is expressed to be
given on the grounds that the strata company cannot obtain insurance cover for
the building on reasonable terms until that work has been carried out.
(3) A proprietor may,
instead of complying with subsection (1) or (2), pay a part of the
premium for insurance cover if the strata company is satisfied that the amount
of premium remaining to be paid by the company is an amount that the company
should reasonably pay for that insurance cover.
(4) A proprietor may,
instead of complying with subsection (2), take any other step that
enables insurance cover on the building to be obtained on reasonable terms.
(5) The obligations
created by this section are enforceable under section 103K.
[Section 54A inserted: No. 58 of 1995