Document ID: chunk:federal_register_of_legislation:F2021C00174:reg:12:p2
Version: federal_register_of_legislation:F2021C00174
Segment Type: reg
Provision Reference: reg 12 (pt 2/5)
Character Range: 4122–7123

with paragraph 601FC(1)(j) of the Act in relation to the scheme.

Condition
(2) A responsible entity that relies on the exemption in subsection (1) must ensure that an item of scheme property of the scheme is valued as soon as practicable after the responsible entity has reasonable grounds to believe that a valuation of the item is in the best interests of members or is needed for the scheme to operate in a manner that is fair to all members.
(3) A responsible entity that has not complied with the condition in subsection (2) cannot rely on the exemption in subsection (1).

Part 3—Declarations

7 Disclosure of prices for the purchase of time-sharing interests
Chapter 5C of the Act applies to a responsible entity of a registered time-sharing scheme as if section 601GA were modified or varied as follows:
(a) in subsection (1), omit "The", substitute "Subject to subsection (1A), the";
(b) after subsection (1) insert:
              "(1A) The constitution of a registered time-sharing scheme need not make adequate provision for the consideration that is to be paid to acquire an interest in the scheme if the constitution contains provisions to the effect of the following:
Acquisition price
                  (a) the consideration that is to be paid to acquire an interest in the scheme is:
                     (i) the price stated in the Product Disclosure Statement for the interests that is in use at the time of the acquisition; or
                     (ii) in relation to the sale of an interest of a defaulting member or approved hardship member by the responsible entity under a power of sale or due to forfeiture to the responsible entity—a price specified in paragraph (k);
                   Hardship withdrawals
                  (b) a member may give the responsible entity a hardship application, provided that if the responsible entity has received a hardship application (previous hardship application) from the member within the previous 3 months and has considered the previous hardship application:
                     (i) the responsible entity has a discretion whether or not to consider the current hardship application;
                     (ii) if the responsible entity decides not to consider the current hardship application:
                         (A) the responsible entity must notify the member in writing as soon as possible of its decision; and
                         (B) paragraphs (c) to (l) do not apply in relation to the hardship application;
                  (c) if the responsible entity receives a hardship application, the responsible entity:
                     (i) must, as soon as possible after receipt of the hardship application, give the member a written confirmation that the hardship application has been received; and
                     (ii) must consider whether further information is required to determine whether the member has met the hardship criteria and, if so, give a notice to the member by no later than 30 days after