Application money to be held on trust
253B Application money to be held on trust
If a person offers debentures for issue under a disclosure statement, the person must hold —
all application money received from people applying for debentures under the disclosure statement; and
all other money paid by them on account of the debentures before they are issued,
in trust under this section for the applicants until the debentures are issued or the money is returned to the applicants.
Penalty for this subsection: a fine of $2 500, or imprisonment for 6 months, or both.
If the application money needs to be returned to an applicant, the person must return the money as soon as practicable.
Penalty for this subsection: a fine of $2 500, or imprisonment for 6 months, or both.
Despite The Criminal Code section 23B(2), it is immaterial for the purposes of subsections (1) and (2) that any event occurred by accident.
[Section 253B inserted: No. 7 of 2016 s. 89.]
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