Document ID: chunk:federal_register_of_legislation:C2004A03717:body:0:p25
Version: federal_register_of_legislation:C2004A03717
Segment Type: other
Provision Reference: 
Character Range: 59548–62383

purpose of undertaking insurance under this Part and, without limiting the generality of its powers under this subsection, may enter into an agreement of a kind known as a concessions agreement with a person who is, or is likely to be, the mortgagee of property insured with the Commonwealth.

Insurance of dwelling-house etc. in which Corporation has an interest
"38d. (1) While the Corporation has an interest in a dwelling-house, or in any building materials on the site of a dwelling-house, because of a Corporation advance or a sale by the Corporation, the person liable to repay the advance, or to pay the balance of the purchase money, shall keep the dwelling-house or building materials insured:
     (a) with the Commonwealth; or
     (b) under a contract of insurance with an approved person for such amount and against such risks as the Secretary reasonably requires, having regard to the Corporation's interest.
"(2) If property, being a dwelling-house or building materials referred to in subsection (1), is at any time not insured as required by that subsection,

the property shall be taken to be insured with the Commonwealth and the person required by that subsection to keep it insured is liable to the Commonwealth for premiums due to the Commonwealth in respect of the insurance of the property that the Commonwealth is to be taken to have undertaken.
"(3) In this section:
    'approved person' means a person authorised under the Insurance Act 1973 to carry on insurance business and who has entered into an agreement of the kind known as a concessions agreement with the Commonwealth in respect of all dwelling-houses insured with that person in which the Corporation has interests.

Termination of insurance
"38e. (1) This section applies where:
    (a) the Commonwealth has undertaken insurance in relation to a dwelling-house only because the Corporation proposed to make a Corporation advance, or a person has applied for a certificate of entitlement, in relation to that dwelling-house; and
    (b) the applicant for the advance or certificate dies or any of the following things happen otherwise than because the applicant has disposed of his or her interest in the dwelling-house:
          (i) the Corporation no longer proposes to make the Corporation advance;
          (ii) the Secretary refuses to issue the certificate of entitlement to the applicant;
          (iii) the Bank refuses to make a subsidised advance to the applicant in relation to the dwelling-house;
          (iv) the certificate of entitlement issued to the applicant ceases to have effect under the agreement.
"(2) Where this section applies:
    (a) the insurance undertaken in relation to the dwelling-house does not cease to have effect because of the death of the applicant or the happening of any of the things referred to in