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Late Payment of Government Debts (Interest) Bill 2007

Part 4—Miscellaneous

11 Advance payments

(1) A qualifying debt created by virtue of an obligation to make an advance payment is treated for the purposes of this Act as if it was created on the day specified in subsection (2), (3) or (4).

(2) Where the advance payment is the whole contract price, the debt is treated as if it was created on the day on which the supplier’s obligation is performed.

(3) Where the advance payment is part of the contract price, but the sum is not due in respect of any part performance of the supplier’s obligation, the debt is treated as if it was created on the day on which the supplier’s obligation is performed.

(4) Where the advance payment is a part of the contract price due in respect of any part performance of the supplier’s obligation, but is payable before that part performance is completed, the debt is treated as if it was created on the day on which the relevant part performance is completed.

(5) For the purposes of this section an obligation to pay the whole outstanding balance of the contract price is to be regarded as an obligation to pay the whole contract price and not as an obligation to pay a part of the contract price.

12 Change in identity of the parties

The operation of this Act in relation to qualifying debts is not affected by:

(a) any change in the identity of the parties to the contract creating the debt; or

(b) the passing of the right to be paid the debt or the duty to pay it (in whole or in part) to a person other than the person who was the original creditor or the original debtor when the debt was created.

13 Regulations

The Governor-General may make regulations prescribing matters:

(a) required or permitted by this Act to be prescribed; or

(b) necessary and convenient to be prescribed for carrying out or giving effect to this Act.

 

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