Veterans' Affairs Legislation Amendment (Budget Measures) Act 2009 (80 of 2009)

Schedule 1   Amendments

Part 2   Amendments relating to insurance

Defence Service Homes Act 1918

12   After section 38EA

Insert:

38EAA Termination of insurance undertaken under section 38CAA

(1) This section applies if:

(a) the Commonwealth has undertaken insurance under section 38CAA in relation to a house in which a person who is eligible under the Defence Home Ownership Assistance Scheme Act 2008 has an interest; and

(b) the person ceases to be eligible.

(2) If this section applies:

(a) the insurance undertaken in relation to the house does not cease to have effect when the person ceases to be eligible; and

(b) unless the insurance has already ceased to have effect for some other reason, the Secretary must give reasonable notice in writing to each person having an interest in the house that the insurance will cease to have effect on a day specified in the notice.

(3) If the Secretary gives a notice under paragraph (2)(b), the insurance ceases to have effect on the day specified in the notice unless it has already ceased to have effect.

(4) If this section applies because a person dies and the person is survived by a widow or widower, the Secretary must not give a notice under paragraph (2)(b) in relation to the house unless the Secretary is satisfied that the widow or widower is not eligible.

(5) In this section:

eligible and house have the same respective meanings as in the Defence Home Ownership Assistance Scheme Act 2008.