Document ID: chunk:federal_register_of_legislation:C2004A04669:body:0:p4
Version: federal_register_of_legislation:C2004A04669
Segment Type: other
Provision Reference: 
Character Range: 7445–10142

starting date, but the student does not start the course on that date (and has not previously withdrawn); or

     (b) the student withdraws from the course (either before or after the agreed starting date).

"(2) If the provider and student have a written agreement that covers the refund consequences of the situation that caused this section to apply, the provider must pay the student the amount (if any) required by the agreement.

"(3) If the provider and student do not have a written agreement that covers the refund consequences of the situation that caused this section to apply, the provider must pay the student the difference between:

    (a) the amounts received by the provider before the default date that the provider was required by subsection 6A(1) to pay into a notified trust account for the student in relation to the course (whether or not the provider actually paid the amounts into a notified trust account); and

    (b) any part of those amounts that the provider became entitled to withdraw from the account before the default date.

"(4) The provider must pay within 6 weeks after receiving a written claim from the student.

"(5) The student is entitled to recover the amount as a debt, by action in a court of competent jurisdiction.

"(6) A provider who intentionally or recklessly contravenes this section is guilty of an offence punishable by imprisonment for up to 12 months.

  "(7) In this section:

'agreed starting date' means the date on which the course was scheduled to start, or a later date agreed between the provider and the student;

'default date' means:

  (a) the agreed starting date, if paragraph (1)(a) applies; or

  (b) the date on which the student withdrew, if paragraph (1)(b) applies.".

  (2) If, at the commencement of this section:

    (a) money is in a special account maintained by a provider for the purposes of section 6 of the Principal Act; and

    (b) the account also qualifies as a notified trust account for the purposes of section 6A of the Principal Act as amended by this Act;

sections 6A, 6B and 6C of the amended Act apply as if the provider had paid that money into that account in compliance with subsection 6A(1) of the amended Act.

Arrangements to ensure capacity to make refunds

6. Section 7 of the Principal Act is amended by omitting from subsection (1) "the requirements of subsection 6(5)" and substituting "sections 6B and 6C".

Arrangements to ensure capacity to make refunds

  7. Section 7 of the Principal Act is repealed.

Insertion of new section

  8. Before section 8 of the Principal Act the following section is inserted:

Provider must be member of tuition assurance scheme

"7A.(1) After the