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s 262

Freezing land trust’s accounts

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Part 20Provisions about land trusts
Division 5Freezing accounts of land trusts

262 Freezing land trust’s accounts

(1)

The chief executive may give a direction under subsection (2) if, on considering a report on an audit of a land trust’s accounts, it appears to the chief executive that—

(a)

the land trust, a member of the land trust or another person has, or may have, stolen, misappropriated or misapplied trust money; or

(b)

the accounts of the land trust are not being kept appropriately.

(2)

The chief executive may direct, by a notice, that—

(a)

an amount must not be drawn from a stated account other than with the chief executive’s approval; or

(b)

a stated account may be operated only under stated conditions.

(3)

The direction must—

(a)

be given to the holder of the account and the financial institution where the account is kept; and

(b)

state the account to which it relates; and

(c)

if it includes a direction under subsection (2)(b), state the conditions under which the account may be operated.

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