BANKRUPTCY ACT 1966 - SECT 139ZIE Bankrupt must open and maintain supervised account

BANKRUPTCY ACT 1966 - SECT 139ZIE

Supervised account notice

  (1)   For the purposes of this Subdivision, a supervised account notice is a written notice that is issued by the trustee of a bankrupt's estate and that:

  (a)   requires the bankrupt, within:

  (i)   10 business days after the notice is given to the bankrupt; or

  (ii)   such longer period (if any) as is specified in the notice;

    to open an account (a supervised account ) that complies with the following requirements:

  (iii)   the account is kept with an ADI;

  (iv)   the account is kept in Australia;

  (v)   the account is denominated in Australian currency;

  (vi)   the account is held solely in the name of the bankrupt;

  (vii)   deposits may be made to, and withdrawals may be made from, the account;

  (viii)   the account is designed not to have a debit balance;

  (ix)   such other requirements (if any) as are specified in the notice; and

  (b)   requires the bankrupt to inform the ADI, when opening the account, that the account is a supervised account; and

  (c)   requires the bankrupt, after the account is opened, to maintain the account for so long as the notice is in force.

  (2)   A supervised account notice must be in the approved form.

Compliance with supervised account notice

  (3)   A bankrupt to whom the supervised account regime applies must comply with a supervised account notice in force in relation to the bankrupt.

When supervised account notice ceases to be in force

  (4)   A supervised account notice relating to a bankrupt ceases to be in force if the bankrupt ceases to be a bankrupt to whom the supervised account regime applies.

Note:   A supervised account notice may be revoked under subsection   139ZIEA(1).

Trustee to be notified of account details

  (5)   A bankrupt to whom the supervised account regime applies must, within 2 business days after opening a supervised account, give a written notice to the trustee setting out the following information about the supervised account:

  (a)   the name of the ADI concerned;

  (b)   the name in which the account is held;

  (c)   the account number;

  (d)   the BSB number concerned.

Offence

  (6)   A person commits an offence if:

  (a)   the person is subject to a requirement under subsection   (3) or (5); and

  (b)   the person engages in conduct; and

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

Penalty for contravention of this subsection:   Imprisonment for 6 months.