Section 67J(1) of the QBCC Act does not independently restrict the use of securities where no debt is due — that restriction arises from the contract. However, s 67J(2) imposes a 28-day notice requirement, and the better view is that non-compliance invalidates the notice. A contractual covenant not to restrain calls on performance guarantees (a risk allocation clause) is not inconsistent with s 67J and remains effective for disputes about whether a debt is due, but cannot be relied upon where the case is non-compliance with s 67J notice requirements. The 28-day period under s 67J(2) commences from the date the contracting party becomes aware of its right to obtain the amount owed, which in the case of liquidated damages for delay, is the date of certification of completion under the contract, not the date of earlier awareness that delay had occurred.
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