18. — (1) F20[Subject to section 16A(2), payments may be made] from the Fund for all or any of the following purposes—

(a) to provide travel facilities for any customer of a tour operator or travel agent who is outside Ireland and who is unable to make the return journey provided for in an overseas travel contract by reason of the inability or failure of the tour operator or travel agent concerned to fulfil his financial or contractual obligations in relation to such overseas travel contract;

F21[(aa) where a package travel contract includes carriage of a traveller, to provide repatriation, and, if necessary, the financing of accommodation prior to the repatriation, of that traveller, required as a consequence of the insolvency of the organiser of the package travel contract concerned;]

(b) to reimburse a customer of a tour operator or travel agent for any reasonable expenses necessarily incurred by such customer by reason of the inability or failure of the tour operator or travel agent to meet his financial or contractual obligations in relation to an overseas travel contract;

F22[(ba) to reimburse a traveller for any reasonable expenses necessarily incurred by the traveller in respect of a package travel contract as a consequence of the insolvency of the organiser of the package travel contract concerned;]

(c) to refund, as far as possible, to a customer of a tour operator or travel agent any payments made by him to the tour operator or travel agent in respect of an overseas travel contract which could not be completed by reason of the inability or failure of the tour operator or travel agent to meet his financial or contractual obligations in relation to such overseas travel contract;

F23[(ca) to refund, as far as possible, to a traveller all payments made by him or her in respect of a package travel contract where the travel services under the package travel contract could not be performed as a consequence of the insolvency of the organiser of the package travel contract concerned;]

(d) to defray any reasonable expenses incurred by the Minister, or provide for any payments by the Minister, on behalf of a customer of a tour operator or travel agent in respect of an overseas travel contract which could not be completed by reason of the inability or failure of the tour operator or travel agent to meet his financial or contractual obligations in relation to such overseas travel contract.

F24[(e) to defray any reasonable expenses related to the recovery of monies due under subsection (7) where the Minister is satisfied that in undertaking such expenses there would be a substantial interest in protecting the fund;]

(2) Payments may not be made from the Fund to a person in respect of any loss or liability incurred in connection with an overseas travel contract unless the tour operator or travel agent concerned held, at the time such person entered into the contract, a licence under this Act, or unless the licence of such operator or travel agent was, at that time, revoked and the revocation is the subject of an appeal to the court.

(3) Where money is payable on foot of the Bond to, or for the benefit of, a customer of a tour operator or travel agent for the purpose of compensating such customer for losses or liabilities incurred by him in connection with an overseas travel contract—

(a) a payment shall not be made out of the Fund until all moneys payable under the Bond have been paid to, or for the benefit of, such person, and

(b) a payment shall not be made out of the Fund to any person in respect of losses or liabilities incurred by him in any case where such person has already been reimbursed in full from moneys payable pursuant to the Bond.

(4) If any event occurs which may affect or delay payments pursuant to the Bond, the Minister or any person nominated by him pursuant to this Act, at his discretion, may make payments from the Fund to or for the benefit of any customer of a tour operator or travel agent who may be affected and any amount so paid shall be repaid to the Fund as soon as may be after any funds payable pursuant to the Bond have been realised.

(5) Without prejudice to any existing right of a customer of a tour operator or travel agent to recover damages in relation to the standard of accommodation or service provided pursuant to an overseas travel contract, nothing in this section shall be construed as enabling such customer to recover any such damages from the Fund.

(6) F25[Subject to section 16A(2), regulations made by the Minister under this section may]—

(a) provide for the determination of the amounts of payments from the Fund,

(b) provide for the terms on which and the manner in which any payments from the Fund may be made in any particular case or classes of case,

(c) specify the manner in which payments are to be made in any case where the amount of the Fund and any sums due pursuant to the Bond of a tour operator or travel agent are insufficient to satisfy the claims of all persons concerned, and, in particular, may specify that in any such case payments shall be made in proportion to the amount established to be due in respect of each claim.

F26[(7) Where payments have been made from the fund under subsection (1), because the Bond is insufficient, the fund shall be an unsecured creditor of the tour operator or travel agent concerned, in respect of such payments.]