Disposal of amount held in prescribed trust account
18 Disposal of amount held in prescribed trust account
A recognised entity that is paid an amount under section 17(1) must hold the amount in the entity’s prescribed trust account until a party to the contract or instrument becomes entitled, under this part or otherwise according to law, to a repayment or payment of the amount.Maximum penalty—200 penalty units or 1 year’s imprisonment.
On a party becoming entitled to a repayment or payment of the amount, the recognised entity must dispose of the amount in accordance with the law governing the operation of the entity’s prescribed trust account.Maximum penalty—200 penalty units or 1 year’s imprisonment.
Subsections (1) and (2) apply despite anything in the contract or instrument under which the amount was paid to the recognised entity.
Note—See also section 22, which prohibits contracting out of a provision of this Act.
The statute text is free to read above. View Pro plans to unlock the case-law research tools for each provision.