Notice of insurance arrangements for regulated mortgage
446 Notice of insurance arrangements for regulated mortgage
(1) If a client entrusts money to a legal practitioner and the money, or part of the money, is proposed to be advanced to a borrower for a regulated mortgage, the practitioner must, within 7 days after the money is entrusted to the practitioner, give the client written notice:
advising the client of the effect of section 445; and
(b) including details of the policy of fidelity insurance mentioned in section 444.
(2) The legal practitioner must not advance any of the money to a borrower for a regulated mortgage unless:
(a) the client has been given the notice mentioned in subsection (1); and
(b) after having been given the notice, the client has given the practitioner specific written authority to advance the money for the mortgage.
(3) A contravention of this section does not limit the operation of section 445.
(4) This section does not apply in relation to a regulated mortgage forming part of a managed investment scheme operated by a responsible entity.
This Act’s bill:Explanatory statementSecond reading speech
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