BANKRUPTCY ACT 1966

PART II - ADMINISTRATION  

Division 2 - Common Investment Fund  

SECTION 20J   INTEREST ON MONEYS IN COMMON FUND PAYABLE ONLY IN CERTAIN CIRCUMSTANCES  

20J(1)   [Estate not entitled to interest]  

Where the Official Trustee is:


(a) the trustee of the estate of a bankrupt or of a deceased debtor; or


(b) the trustee of a fund of moneys held or received by the Official Trustee in respect of a particular debtor or bankrupt by reason of being:


(i) the trustee of a composition, or of a scheme of arrangement, accepted under Division 6 of Part IV ; or

(ii) the trustee of a personal insolvency agreement;

the estate or the fund is not entitled, except as provided by subsections (2), (3) and (3A), to interest on moneys held by the Official Trustee as trustee of the estate or fund, as the case may be.

20J(2)   [Inspector-General may direct interest to be paid to estate]  

Where moneys have been held, or are likely to be held, for a prescribed reason, or for one prescribed reason and then for another prescribed reason, by the Official Trustee as the trustee of the estate of a bankrupt or of a deceased debtor, or as trustee of a fund referred to in paragraph (1)(b), for not less than one year longer than those moneys would have been held, or would be likely to be held, by the Official Trustee but for that reason or those reasons, the Inspector-General may direct, by writing under his or her hand, that interest on those moneys, at the rate prescribed by the regulations for the purposes of this section and in respect of such period as he or she determines, shall form part of that estate or fund, as the case may be.

20J(3)   [Interest accrued before commencing date ]  

Where, on or after the date of commencement of this section (in the subsection referred to as the commencing date ), the Official Trustee receives an amount by way of interest on moneys (other than moneys of the kind referred to in paragraph (1)(b)), or on investments, that form part of the Common Fund by virtue of subsection 20B(3) :


(a) if the interest accrued in respect of a period that ended before the commencing date - the amount of the interest forms part of the estate in respect of which those moneys or investments were held immediately before the commencing date; or


(b) if the interest accrued in respect of a period that commenced before, but ended on or after, the commencing date - an amount that bears to the amount of that interest the same proportion as the number of days in the part of the period in respect of which the interest accrued that occurred before the commencing date bears to the number of days in that period forms part of the estate in respect of which those moneys or investments were held immediately before the commencing date.

20J(3A)   [Interest received on or after commencing day ]  

Where, on or after the date of commencement of this subsection (in this subsection referred to as the commencing day ), the Official Trustee receives an amount by way of interest on moneys held or received by the Official Trustee by reason of being trustee of a fund referred to in paragraph (1)(b) (in this subsection referred to as the appropriate fund ), being moneys that form part of the Common Fund:


(a) if the interest accrued in respect of a period that ended before the commencing date - the amount of the interest forms part of the appropriate fund; or


(b) if the interest accrued in respect of a period that commenced before, but ended on or after, the commencing day - an amount that bears to the amount of that interest the same proportion as the number of days in the part of the period in respect of which the interest accrued that occurred before the commencing day bears to the number of days in that period forms part of the appropriate fund.

20J(4)   [Interest on moneys not part of estate or fund]  

Where it is established that:


(a) moneys held by the Official Trustee as the trustee of the estate of a bankrupt or of a deceased debtor do not form part of the estate; or


(b) moneys held by the Official Trustee as part of a fund referred to in paragraph (1)(b) do not form part of the fund;

interest on those moneys is payable to the person to whom those moneys are payable, out of the Common Fund, at the rate prescribed by the regulations for the purposes of this section and in respect of the period during which those moneys are held by the Official Trustee.

20J(5)   [Moneys held for prescribed reason]  

For the purposes of subsection (2), moneys shall be taken to have been held, or to be likely to be held, by the Official Trustee for a prescribed reason if the moneys have been held, or are likely to be held, as the case may be, by the Official Trustee:


(a) by reason of the institution or defending of legal proceedings in good faith;


(b) by reason that a person has, or has had, under consideration, in good faith, the institution or defending of legal proceedings; or


(c) for any other reason declared by the regulations to be a prescribed reason for the purposes of this section.




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