Land Acquisition Act 1993

An acquiring authority may, before an amount of compensation payable under this Act is agreed or finally determined – open in an authorised deposit-taking institution a trust account in the name of the authority for a person the authority believes may be entitled to compensation under this Act; and deposit in that account the amount of compensation that the authority estimates is payable to the person.

Where an acquiring authority has opened a trust account pursuant to subsection (1), the authority must not withdraw any part of the amount deposited in the account or any interest accrued on that amount or close that account unless – the authority has rejected the person's entitlement to compensation and the person has not made an application under section 39(6); or the person's entitlement to compensation has been admitted and not subsequently rejected or has been finally determined under Part 4 and the amount of compensation has been agreed or finally determined under that Part; or the acquiring authority proposes to pay a sum of money in satisfaction of a claim for compensation into the Court under section 53; or the acquiring authority proposes to pay a sum of money to the person under section 50; or the acquiring authority proposes to pay a prescribed charge under section 51; or where the person is entitled to compensation under section 24(2), (3), (4) or (5), a claim for compensation has not been made within the period specified in section 37 or determined under section 78.

Where a trust account is closed, the acquiring authority may use for its own purposes – if the account was closed under subsection (2)(a), (b), (c) or (d), any amount of the proceeds of that account which exceeds the amount paid to the claimant or the Court; or if the account was closed under subsection (2)(f), the proceeds of that account.

Where an amount is withdrawn from a trust account under subsection (2)(e), the acquiring authority must use that amount to pay the prescribed charge referred to in that subsection.