Document ID: chunk:federal_register_of_legislation:F2021C00174:reg:12:p4
Version: federal_register_of_legislation:F2021C00174
Segment Type: reg
Provision Reference: reg 12 (pt 4/5)
Character Range: 9702–12813

payment in relation to the scheme on or after the date the responsible entity received the member's hardship application (including payment of any shortfall from the sale process referred to in paragraph (k)) ; and
                     (iii) if the approved hardship member was a defaulting member, has no liability to make payment of any amounts that are overdue for payment;
                  (g) the responsible entity may, to the extent provided for in the constitution, suspend the rights of an approved hardship member to use property under the scheme, receive distributions under the scheme or otherwise enjoy benefits produced by the scheme;

          Forfeiture and sale circumstances
                  (h) subject to paragraphs (i) to (l), the responsible entity may, in accordance with the constitution, forfeit the interest of a defaulting member to the responsible entity, or exercise a power of sale of a defaulting member's interest on behalf of a defaulting member;
                  (i) if the responsible entity receives a hardship application from a defaulting member, the responsible entity must not forfeit or exercise a power of sale of the interests of that member unless the responsible entity has:
                     (i) decided to reject the member's hardship application; and
                     (ii) given the member a decision notice within the time required under subparagraph (c)(iv);

              Sale process for defaulting member and approved hardship member
                  (j) the responsible entity must use reasonable endeavours to sell:
                     (i) the interest of a defaulting member if the interest has been forfeited to the responsible entity or if the responsible entity has decided to exercise a power of sale of the interest on behalf of the defaulting member; and
                     (ii) the interest of an approved hardship member;
                  (k) the price for which the responsible entity sells the interest of a defaulting member or an approved hardship member must be:
                     (i) if a Product Disclosure Statement has been given in accordance with Part 7.9 at any time in the 12 months before the sale for interests in the scheme that are in the same class—the price shown in the Product Disclosure Statement most recently given; or
                     (ii) otherwise—a fair market price obtained by the responsible entity using reasonable endeavours;
                  (l) the responsible entity must apply any proceeds of sale of a defaulting member or approved hardship member, or of other exploitation by it of the interest of the defaulting member or approved hardship member (including any proceeds of rental of, or licensing to use, the scheme property that relates to the interest of the member) in the following order:
                     (i) in payment of reasonable costs of the sale or exploitation;
                     (ii) in payment of any reasonable administrative costs arising from the forfeiture, sale or withdrawal;
                     (iii) in payment of any outstanding amounts due from the