BANKRUPTCY ACT 1966

PART IX - DEBT AGREEMENTS  

Division 8 - Registration of debt agreement administrators etc.  

Subdivision C - Surrender and cancellation of registration as a debt agreement administrator  

SECTION 186LB   ACCOUNT-FREEZING NOTICES - DEBT AGREEMENT ADMINISTRATION TRUST ACCOUNTS  

186LB(1)   Scope.  

This section applies to a bank if:


(a) the Inspector-General believes on reasonable grounds that:


(i) a person who is or was an administrator of a debt agreement holds or held an account with the bank; and

(ii) the account was kept, or purportedly kept, in compliance with subsection 185LD(1) ; and


(b) at a particular time (the show cause time ), the Inspector-General asked the person:


(i) under subsection 186K(3) or 186L(3) , to give the Inspector-General a written explanation why the person should continue to be registered as a debt agreement administrator; or

(ii) under subsection 40-40(1) of Schedule 2 , to give the Inspector-General a written explanation why the person should continue to be registered as a trustee; and


(c) if subparagraph (b)(ii) applies - the Inspector-General asked for the explanation on the basis of paragraph 40-40(1)(m) of Schedule 2 .

186LB(2)   Giving of freezing notice.  

The Inspector-General may, by written notice (an account-freezing notice ) given to the bank within 42 days after the show cause time, direct the bank not to:


(a) make a withdrawal from the account; or


(b) permit the making of a withdrawal from the account;

except:


(c) in accordance with the written consent of the Inspector-General; or


(d) to recover from the account-holder an amount equal to an amount of tax (however described) that the bank has paid or is liable to pay in connection to the operation of the account; or


(e) to discharge a liability of the account-holder to pay a fee or charge in relation to the operation of the account; or


(f) in such circumstances (if any) as are specified in the regulations.

186LB(3)   Duration of freezing notice.  

An account-freezing notice given to a bank:


(a) comes into force when the notice is given to the bank; and


(b) remains in force for:


(i) 42 days after the show cause time; or

(ii) if a shorter period is specified in the notice - that shorter period.

186LB(4)   Extension of 42-day period.  

The Court may, on application by the Inspector-General, extend, or further extend, the 42-day period referred to in subsection (2) or subparagraph (3)(b)(i).

186LB(5)   Revocation of freezing notice.  

If an account-freezing notice is in force in relation to a bank, the Inspector-General may, by written notice given to the bank, revoke the account-freezing notice.

186LB(6)   Copy of account-freezing notice to be given to account-holder etc.  

If the Inspector-General gives or revokes an account-freezing notice that relates to an account, the Inspector-General must give a copy of the account-freezing notice or the revocation notice, as the case may be, to the holder of the account.

186LB(7)   [ Account-freezing notice or revocation notice still valid]  

A failure to comply with subsection (6) does not affect the validity of the account-freezing notice or the revocation notice, as the case may be.

186LB(8)   Consent of Inspector-General.  

A consent under paragraph (2)(c) may be:


(a) unconditional; or


(b) subject to such conditions (if any) as are specified in the notice of consent.

186LB(9)   [ Where consent refused]  

If the Inspector-General decides to refuse to give a consent under paragraph (2)(c), an application may be made to the Administrative Appeals Tribunal for review of the decision.




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