Financial institution must comply with direction
83 Financial institution must comply with direction
A financial institution to which a direction under this Division is given (whether or not the direction has been given to anyone else) must not, while the direction is in force—
pay a cheque or other instrument drawn on the account concerned unless the cheque or instrument is also signed by the Secretary or a person authorised by the Secretary for the purposes of this section, or
give effect to another transaction on the account that is not authorised because of the direction.
Maximum penalty—500 penalty units.
The signature of the Secretary or authorised person on a cheque or other instrument is sufficient evidence of the Secretary’s approval to draw an amount from the account to honour the cheque or other instrument.
A manager or principal officer in charge of an office or branch of the financial institution where an account is kept, or another officer of the financial institution, must not knowingly permit a contravention of this section by the financial institution.
Maximum penalty—100 penalty units or imprisonment for 12 months, or both.
A person to whom a direction is given does not incur a civil liability to another person by reason only of complying with the direction.
This Act’s bill:Explanatory memorandumSecond reading speech
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