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 65-20   CONSEQUENCES FOR FAILURE TO PAY MONEY INTO ADMINISTRATION ACCOUNT  

Application of this section

65-20(1)  
This section applies if:


(a) the trustee of a regulated debtor ' s estate:


(i) is subject to a requirement under subsection 65-5(1) (paying money into administration account); and

(ii) fails to comply with the requirement in relation to an amount of money; and


(b) the amount exceeds:


(i) $50; or

(ii) if another amount is prescribed - that other amount.
Exception

65-20(2)  
Subsection (1) does not apply if, on the application of the trustee of the regulated debtor ' s estate, the Court is satisfied that the trustee had sufficient reason for failing to comply with the requirement in relation to the amount. Trustee must pay penalty on excess

65-20(3)  
The trustee must, as a penalty, pay interest to the Commonwealth on the excess, worked out:


(a) at the rate of 20% per year; or


(b) if another rate is prescribed - at that other rate;

for the period during which the trustee fails to comply with the requirement.

65-20(4)  
The trustee is personally liable for, and is not entitled to be reimbursed by the estate in relation to, the payment of that interest.




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