Payment of trust money
18 Payment of trust money
An agent must not make a payment of trust money in cash. Maximum penalty: Maximum penalty: $2 500.
When an agent makes a payment of trust money by cheque, the agent—
must ensure that the cheque is marked with the name of the agent and the words "Trust Account"; and
must—
cause the cheque to be crossed and endorsed "Not negotiable";
or
obtain from the person receiving the cheque a receipt that complies with subregulation (4) and keep the receipt as part of the agent's records. Maximum penalty: Maximum penalty: $2 500.
When an agent makes a payment of trust money by cheque, the agent must prepare and keep as part of the agent's records a cheque stub or voucher containing the following information:
the date and reference number of the cheque;
the name of the payee;
the client name or reference and brief particulars of the purpose of the payment;
the amount of the cheque.
The receipt must be legible and contain the following information:
the date and reference number of the cheque;
particulars identifying the trust account against which the cheque is drawn;
the name of the payee;
brief particulars of the purpose of the payment;
the amount of the cheque.
When an agent authorises the payment of trust money by electronic transfer of funds, the agent—
must prepare and keep as part of the agent's records the following information:
the date and reference number of the payment;
the name of the payee;
the client name or reference and brief particulars of the purpose of the payment;
the name or style of the ADI account to which the payment is made, its number and the identifying numbers of the receiving ADI and its branch;
the amount of the payment; and
must, on receiving official written confirmation that the payment has been made, keep that confirmation as part of the agent's records.
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