Settlement Agents Act 1981

A person may request that moneys paid by that person to a settlement agent in respect of a transaction be deposited to the credit of a separate interest bearing trust account maintained in accordance with section 49.

A request shall be in writing.

A settlement agent shall, subject to subsection (4), comply with a request.

Where requirements are prescribed under subsection (6), a settlement agent shall only comply with a request if satisfied that those requirements have been met.

A settlement agent shall ensure that all interest credited to a separate account is paid to the person who requested the deposit of moneys in that account.

Regulations made under section 123 may prescribe requirements to be met before a request can be complied with and, without limiting this subsection, those requirements may relate to —

the amount of moneys paid to the settlement agent; or

the type of transaction in respect of which the moneys are paid; or

the length of time for which the moneys are to be deposited.

In this section —

request means a request under subsection (1).

[Section 49A inserted: No. 59 of 1995 s. 68.]

49B. Interest on trust accounts

Every authorised financial institution with which a trust account is maintained shall pay to the credit of the Interest Account interest on the balance of the trust account at the prescribed rate at such times as are prescribed.

Subsection (1) does not apply to a separate account.

Where a court convicts an authorised financial institution of an offence under subsection (1) and interest required to be paid under that subsection remains outstanding, the court may, in addition to imposing a penalty, order the institution to pay to the credit of the Interest Account an amount equal to the amount of that interest, and any such order may be enforced as if it were a judgment of the court.

In regulations made under section 123 the prescribed rate referred to in subsection (1) may be prescribed by reference to a market rate indicator specified in the regulations.

[Section 49B inserted: No. 59 of 1995 s. 68; amended: No. 46 of 2009 s. 15(3).]

49C. Settlement agents to give Commissioner information about trust accounts

When a settlement agent opens or closes a trust account, the settlement agent shall, as soon as is practicable, inform the Commissioner in writing of the opening or closure of the trust account and, in doing so, shall specify —

the name and number of the trust account; and

the name and address of the authorised financial institution with which the trust account is or was maintained.

Subsection (1) does not apply to a separate account.

If a settlement agent’s trust account is overdrawn, both the settlement agent and the authorised financial institution with which the trust account is maintained shall, as soon as is practicable, inform the Commissioner in writing of —

the name and number of the trust account; and

the amount by which the trust account is overdrawn.

[Section 49C inserted: No. 59 of 1995 s. 68; amended: No. 58 of 2010 s. 176.]