THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.6 - MONEY AND SCRIP OF DEALERS' CLIENTS

SECTION 869   WITHDRAWALS FROM TRUST ACCOUNT  

869(1)  [Withdrawals which can be made]  

A licensee must not withdraw money from a trust account except:

(a)  to make a payment to, or in accordance with the written directions of, a person entitled to the money;

(b)  to make a payment under section 889 to a stock exchange;

(c)  to defray brokerage or any other proper charge;

(d)  to pay to the licensee money to which the licensee is entitled, being money that was paid into the trust account but need not have been so paid; or

(e)  to make a payment that is otherwise authorised by any law of the Commonwealth or of this or any other jurisdiction.

869(2)  [No effect on claims or liens]  

Nothing in this Part affects a lawful claim or lien that a person:

(a)  has against or on money held in a trust account of a person; or

(b)  has, before money received for the purchase of securities or from the sale of securities is paid into a trust account of a person, against or on that money.

869(3)  [Contravention an offence]  

A person who contravenes subsection (1) is guilty of an offence.

869(4)  [Intent to defraud]  

A person who, with intent to defraud, contravenes subsection (1) is guilty of an offence.