Further provisions

Heading: inserted, on 31 March 2017, by section 152 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).

18FC Accounting and records

(1)

Party A must keep proper accounting records of all retention money that—

(a)

correctly record—

(i)

all retention money held on trust; and

(ii)

all amounts of retention money protected by instruments issued for the purpose of this subpart; and

(iii)

all dealings and transactions in relation to retention money or instruments; and

(b)

comply with generally accepted accounting practice; and

(c)

are readily and properly auditable.

(2)

Party A must keep proper and readily verifiable records of all instruments issued for the purpose of this subpart, including—

(a)

a copy of all instruments; and

(b)

for each instrument,—

(i)

a record of party B’s interest in the instrument, including the amount of retention money protected by the instrument; and

(ii)

all amounts of retention money protected by the instrument; and

(iii)

if the issuer’s liability under the instrument is limited to an amount, that amount; and

(iv)

evidence that the premium or other money that is payable, or that may become payable, to the issuer for the instrument has been fully paid by party A; and

(v)

any failure to comply with the terms and conditions of the instrument.

(3)

Subsection (2) does not limit subsection (1).

(4)

Party A must make the accounting and other records available for inspection by party B at all reasonable times and without charge.

(5)

Regulations may prescribe further methods of accounting for retention money or requirements for records.

Section 18FC: inserted, on 31 March 2017, by section 152 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).