Bankruptcy Act 1966
[ CCH Note: Modification Declaration FRLI No F2021L00261 (FRLI No F2021L00261, registered on 19 March 2021 and effective from 1 April 2021.)
Part VIII of the Act is modified by inserting Division 1A before Division 1:
]Division 1A - Interpretation
SECTION 154A INTERPRETATION
154A
In this Part, in its application to Part X , a reference to a registered trustee includes a reference to a controlling trustee and a trustee of a personal insolvency agreement.
View history note
Hide history noteDiv 3 repealed by No 11 of 2016, s 3 and Sch 1 item 54, applicable in relation to the administration of regulated debtors ' estates on and after 1 September 2017.
(Repealed by No 11 of 2016)
S 169 repealed by No 11 of 2016, s 3 and Sch 1 item 54, applicable in relation to the administration of regulated debtors
'
estates on and after 1 September 2017. S 169 formerly read:
S 169(1) substituted by No 11 of 1997, s 3 and Sch 1(13). S 169(1) formerly read:
S 169(1A) inserted by No 11 of 1997, s 3 and Sch 1(13). S 169(1B) inserted by No 11 of 1997, s 3 and Sch 1(13). S 169(1C) inserted by No 11 of 1997, s 3 and Sch 1(13). S 169(1D) inserted by No 11 of 1997, s 3 and Sch 1(13). S 169(4) substituted by No 12 of 1980, s 86. Transitional provision
No 11 of 1997, s 3 and Sch 3, provides:
1 Bank accounts and investments under sections 169, 172 and 210
(1) If: the trustee must pay the money into an account that complies with that section as so amended as soon as reasonably practicable after the commencement of this Schedule. (2) If, immediately before the commencement of this Schedule, a trustee held public securities as an investment under section 172 of the
Bankruptcy Act 1966
as then in force, the trustee must, as soon as reasonably practicable after that commencement: (3) This item does not require a trustee to close a fixed term deposit, or to convert fixed term securities into money, before the term ends. (4) In this item, a reference to section 169 or 172 of the
Bankruptcy Act 1966
as in force at a particular time includes a reference to that section as applied by other provisions of that Act as then in force.
bank
S 169(5) inserted by No 48 of 1998, Sch 1 item 21.
SECTION 169 TRUSTEE TO PAY MONEYS INTO BANK ACCOUNT
169(1)
A trustee of the estate of a bankrupt must pay all money received by him or her on account of the estate to the credit of a single interest bearing bank account that complies with the requirements (if any) specified in the regulations.
169(1)
A trustee of the estate of a bankrupt shall pay all moneys received by him or her on account of the estate to the credit of an account opened and kept in the name of the estate at such bank as the trustee selects.
169(1A)
The trustee must only pay into the account money received by the trustee on account of the estate of a bankrupt, but he or she may pay in money received on account of more than one estate.
169(1B)
The trustee is entitled, in his or her personal capacity, to each payment of interest on the account, less an amount equal to the bank fees or charges (if any) paid or payable on the account during the period to which the interest relates.
169(1C)
If, under subsection (1B), the trustee is only entitled to part of a payment of interest, the rest of that payment:
(a)
if the account contains money from only one estate
-
forms part of that estate; or
(b)
if the account contains money from more than one estate
-
forms part of those estates in proportion to the respective amounts of money held in the account on account of each of those estates.
169(1D)
Interest on money in the bank account is not subject to taxation under a law of the Commonwealth, a State or a Territory except as provided in Part 2 of the
Bankruptcy (Estate Charges) Act 1997
.
169(2)
If a trustee of the estate of a bankrupt keeps in his or her hands any money exceeding $50 received on behalf of the estate for a period exceeding 5 days (excluding any day on which the branch of the bank at which the estate bank account is kept is not open for business), then, unless he or she satisfies the Court that his or her reason for retaining the money was sufficient:
(a)
he or she is liable to pay interest at the rate of 20% per annum on the amount by which the amount so retained exceeds $50; and
(b)
the Court may remove him or her from his or her office of trustee.
169(3)
Where a trustee is so removed from office, the Court may make such order with respect to his or her remuneration for his or her services as a trustee as the Court thinks proper and may further order that he or she pay expenses incurred by the creditors in consequence of his or her removal.
169(4)
This section does not apply in relation to the Official Trustee.
(a)
immediately before the commencement of this Schedule, a trustee was maintaining an account under:
(i)
section 169 or 172 of the
Bankruptcy Act 1966
as then in force; or
(ii)
section 210 of the
Bankruptcy Act 1966
as in force immediately before the commencement of Schedule 1 to the
Bankruptcy Legislation Amendment Act 1996
; and
(b)
the account does not comply with section 169 of the
Bankruptcy Act 1966
as amended by Schedule 1 to this Act;
(a)
convert the securities into money; and
(b)
pay the money into an account that complies with section 169 of the
Bankruptcy Act 1966
as amended by Schedule 1 to this Act.
169(5)
In this section:
means an ADI or any other bank.
This information is provided by CCH Australia Limited Link opens in new window. View the disclaimer and notice of copyright.