BANKRUPTCY ACT 1966

PART VI - ADMINISTRATION OF PROPERTY  

Division 4B - Contribution by bankrupt and recovery of property  

Subdivision HA - Supervised account regime  

SECTION 139ZIG   TRUSTEE TO SUPERVISE WITHDRAWALS FROM SUPERVISED ACCOUNT  

139ZIG(1)   General prohibition on withdrawals.  

A bankrupt to whom the supervised account regime applies must not:


(a) make a withdrawal from the supervised account; or


(b) authorise the making of a withdrawal from the supervised account.

139ZIG(2)   Exceptions.  

Subsection (1) does not apply if the withdrawal is made:


(a) in accordance with the consent of the trustee under subsection (3); or


(b) to pay a contribution or an instalment of a contribution; or


(c) to transfer an amount as required by a notice under paragraph 139ZIEA(1) (c); or


(d) to make a refund; or


(e) to reverse a credit previously made to the account where the credit arose from an error or the dishonour of a cheque; or


(f) to discharge any of the bankrupt ' s tax liabilities (within the meaning of the Taxation Administration Act 1953 ); or


(g) to discharge the bankrupt ' s liability to pay a tax (however described) imposed by or under a law of the Commonwealth, a State or a Territory; or


(h) to recover from the bankrupt an amount equal to an amount of tax (however described) that the ADI concerned has paid or is liable to pay in connection with the operation of the account; or


(i) to discharge a liability of the bankrupt to pay a fee or charge in connection with the operation of the account.

139ZIG(3)   Trustee may consent to withdrawals.  

The trustee may, by written notice given to the bankrupt, consent to any of the following withdrawals from the supervised account:


(a) a specified withdrawal;


(b) withdrawals included in a specified class of withdrawals;


(c) withdrawals up to a daily, weekly, fortnightly or monthly limit ascertained in accordance with the notice.

139ZIG(4)  
The trustee may, by written notice given to the bankrupt, vary or revoke a consent.

139ZIG(5)  
The powers conferred on the trustee by subsections (3) and (4) may be exercised:


(a) on his or her own initiative; or


(b) on the application of the bankrupt.

139ZIG(6)  
If, following the bankrupt ' s application, the trustee refuses to exercise a power conferred by subsection (3) or (4), the trustee must give the bankrupt written notice of the refusal.

139ZIG(7)   Offence.  

A person commits an offence if:


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


(b) the person engages in conduct; and


(c) the person ' s conduct breaches the requirement.

Penalty: Imprisonment for 12 months.

139ZIG(8)   Garnishee powers not affected.  

This section does not affect the exercise of powers conferred by:


(a) section 139ZL of this Act; or


(b) section 260-5 in Schedule 1 to the Taxation Administration Act 1953 ; or


(c) a similar provision in:


(i) any other law of the Commonwealth; or

(ii) a law of a State or a Territory.




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