Bankruptcy Act 1966

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (BANKRUPTCY)  

Note: See section 4A .

PART 3 - GENERAL RULES RELATING TO ESTATE ADMINISTRATIONS  

Division 65 - Funds handling  

SECTION 65-40   HANDLING SECURITIES  


Securities must be deposited with administration account bank

65-40(1)    
The trustee of a regulated debtor ' s estate must deposit in a bank:


(a) the bills of exchange; and


(b) the promissory notes; and


(c) any other negotiable instrument or security;

payable to the regulated debtor or the trustee as soon as practicable after they are received by the trustee.



Exception

65-40(2)    
If the Court gives a direction that is inconsistent with subsection (1), that subsection does not apply to the extent of the inconsistency.

Offence

65-40(3)    
A person commits an offence of strict liability if:


(a) the person is subject to a requirement under subsection (1); and


(b) the person fails to comply with the requirement.

Penalty: 5 penalty units.

Note 1:

A defendant bears an evidential burden in relation to the matter in subsection (2) (see subsection 13.3(3) of the Criminal Code ).

Note 2:

See also section 277B (about infringement notices).



Delivery of securities

65-40(4)    
The bills, notes or other instrument or security must be delivered out on the signed request of the trustee.




This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.