Hardship withdrawals
7A Hardship withdrawals
Chapter 5C of the Act applies to a responsible entity of a registered time-sharing scheme as if the provisions of that Chapter were varied or modified as follows:
insert the following section in its relative order in Part 5C.3:
"601GAH Discretions in relation to hardship withdrawals
Despite subsection 601GA(4), the constitution of a registered time-sharing scheme (as defined in subsection 601GA(1B)) does not have to set out adequate procedures for making and dealing with withdrawal requests to the extent that the constitution gives the responsible entity a discretion to decide whether to allow or refuse a withdrawal request to which the following apply:
the withdrawal request is in relation to a hardship application (as defined in subsection 601GA(1B)) in accordance with provisions of the constitution to the effect of paragraphs 601GA(1A)(b) to (l);
the requirements set out in the constitution for allowing a withdrawal as a result of the hardship application are otherwise satisfied.
Exercise of discretion must be reasonable
The responsible entity must act reasonably in exercising a discretion covered by subsection (1).
The responsible entity is also subject to its general duties under section 60IFC including the duty to act in the best interests of the members of the scheme."
The responsible entity must ensure that it keeps records which document how and why a decision exercising a discretion covered by subsection (1) was made for a period of 7 years.";
before subsection 601KA(3A) insert:
"(3AB) Subsection (3) and sections 601KB to 601KE do not apply to a withdrawal in accordance with provisions of the constitution of a registered time-sharing scheme (as defined in subsection 601GA(1B)) to the effect of paragraphs 601GA(1A)(b) to (l).".
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