Proceeds of Crime (Consequential Amendments and Transitional Provisions) Act 2002 (86 of 2002)

Schedule 4   Bankruptcy

Part 1   Effect of proceeds of crime orders

Bankruptcy Act 1966

15   At the end of Division 2 of Part VI

Add:

Subdivision B - The effect of proceeds of crime orders and applications for proceeds of crime orders

114A - The effect of proceeds of crime orders

(1) If property of a bankrupt is covered by a restraining order, or a forfeiture order, made on or after the date of the bankruptcy, proceeds of property that is covered by the order must not be applied under Subdivision A while that property is so covered.

(2) If a pecuniary penalty order is made against a bankrupt on or after the date of the bankruptcy, proceeds of any of the property of the bankrupt must not be applied under Subdivision A while the order is in force.

Note: For proceeds of crime orders made before the date of the bankruptcy, see section 58A.

114B - The effect of applications for proceeds of crime orders

(1) If:

(a) an application is made under a proceeds of crime law for a restraining order or a forfeiture order; and

(b) if the order were made, it would cover property of a bankrupt (whether the application is made before, on or after the date of the bankruptcy);

proceeds of any of the property of the bankrupt that would be covered by the order must not be applied under Subdivision A before the application is finally determined.

(2) If:

(a) an application is made under a proceeds of crime law for a pecuniary penalty order; and

(b) the person against whom the order would be made is, or later becomes, a bankrupt;

proceeds of any of the property of the bankrupt must not be applied under Subdivision A before the application is finally determined.

114C - Director of Public Prosecutions must notify the trustee of certain matters

If circumstances arise as a result of which:

(a) this Subdivision prevents Subdivision A from being applied to the proceeds of property of a bankrupt; or

(b) this Subdivision no longer prevents Subdivision A from being applied to the proceeds of property of a bankrupt;

the Director of Public Prosecutions must, as soon as practicable, give the trustee written notice of the existence of the circumstances.