BANKRUPTCY ACT 1966

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (BANKRUPTCY)  

Note: See section 4A .

PART 3 - GENERAL RULES RELATING TO ESTATE ADMINISTRATIONS  

Division 65 - Funds handling  

SECTION 65-1   SIMPLIFIED OUTLINE OF THIS DIVISION  


The trustee of a regulated debtor ' s estate has duties to:

  • (a) promptly pay all money of the estate into an account (called an administration account); and
  • (b) promptly deposit instruments such as securities with a bank; and
  • (c) not pay any money into the account unless it is money of a regulated debtor ' s estate for which the account is held; and
  • (d) only pay money out of the account if it is for a legitimate purpose.
  • The trustee may keep a single account for more than one estate.

    People with a financial interest in the administration of a regulated debtor ' s estate (such as creditors) may ask the Court to give directions to the trustee about the way money and other property of the estate is to be handled.

    If the trustee of a regulated debtor ' s estate does not comply with this Division, the trustee may have to pay penalties, be paid less remuneration or be removed as trustee.




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