"restraining order" means a restraining order made under a proceeds of crime law.

Add:

When property is covered by a restraining order or a forfeiture order

(1)

For the purposes of this Act, property is covered by a restraining order or a forfeiture order during the period:

(a)

starting when the order comes into force in relation to the property; and

(b)

ending when the earliest of the following occurs:

(i)

the order ceases to be in force;

(ii)

a court excludes the property from the order;

(iii)

if the order is a restraining order—a court excludes the property from forfeiture that would or may result from conviction for an offence.

Satisfaction of pecuniary penalty orders

(2)

Without limiting the circumstances in which a pecuniary penalty order ceases to be in force, a pecuniary penalty order ceases to be in force if it is satisfied.

When applications for proceeds of crime orders are finally determined

(3)

For the purposes of this Act, an application for a proceeds of crime order is taken to be finally determined when:

(a)

the application is withdrawn; or

(b)

if the application is successful—the resulting proceeds of crime order comes into force; or

(c)

if the application is unsuccessful—the time within which an appeal can be made has expired and any appeals have been finally determined or otherwise disposed of.

Omit "or 185Q", substitute ", 185Q or 185QA".

Add:

Note: This subsection has a limited application if there are orders in force under the proceeds of crime law: see section 58A.

Note: The heading to section 58 is altered by adding at the end "—general rule".

Omit all the words from and including "bankrupt under", substitute:

bankrupt under:

(a)

a maintenance agreement; or

(b)

a maintenance order;

whether entered into or made, as the case may be, before or after the commencement of this subsection.

Insert:

If a restraining order or forfeiture order is in force

(1)

If property of a bankrupt is covered by a restraining order, or a forfeiture order, made before the date of the bankruptcy, subsection 58(1) does not apply to property that is covered by the order while that property is so covered.

If a pecuniary penalty order is in force

(2)

If a pecuniary penalty order is made against a bankrupt before the date of the bankruptcy, subsection 58(1) does not apply to any of the property of the bankrupt while the order is in force.

Note: For proceeds of crime orders made on or after the date of the bankruptcy, and applications for proceeds of crime orders, see sections 114A to 114C.

Notifying the trustee of grounds for subsection 58(1) to apply to property

(3)

If circumstances arise as a result of which this section no longer prevents subsection 58(1) applying to property of the bankrupt, the Director of Public Prosecutions must, as soon as practicable, give the trustee written notice of the existence of the circumstances.

Omit "Subject to subsection (3A), penalties", substitute "Penalties".

Repeal the subsection, substitute:

(3A)

An amount payable under an order made under a proceeds of crime law is not provable in bankruptcy.

(1) The amendments of section 82 of the Bankruptcy Act 1966 made by this Schedule apply, in relation to any bankruptcy for which the date of bankruptcy is not before the commencement of this Schedule, to any orders made under a proceeds of crime law before or after that commencement.
(2) In applying that section for the purposes of subsection 231(2) of that Act, in relation to any deed of assignment that was not executed before the commencement of this Schedule, that section as so amended applies to any orders made under a proceeds of crime law before or after that commencement.
(3) In applying that section for the purposes of subsection 237(2) of that Act, in relation to any deed of arrangement that was not executed before the commencement of this Schedule, that section as so amended applies to any orders made under a proceeds of crime law before or after that commencement.
(4) In applying that section for the purposes of subsection 243(1) of that Act, in relation to any composition that was not accepted before the commencement of this Schedule, that section as so amended applies to any orders made under a proceeds of crime law before or after that commencement.

Insert:

Add:

Note: The rules under this Subdivision for payments of debts can be affected by proceeds of crime orders and applications for proceeds of crime orders: see Subdivision B.

Add:

(1)

If property of a bankrupt is covered by a restraining order, or a forfeiture order, made on or after the date of the bankruptcy, proceeds of property that is covered by the order must not be applied under Subdivision A while that property is so covered.

(2)

If a pecuniary penalty order is made against a bankrupt on or after the date of the bankruptcy, proceeds of any of the property of the bankrupt must not be applied under Subdivision A while the order is in force.

Note: For proceeds of crime orders made before the date of the bankruptcy, see section 58A.

(1)

If:

(a)

an application is made under a proceeds of crime law for a restraining order or a forfeiture order; and

(b)

if the order were made, it would cover property of a bankrupt (whether the application is made before, on or after the date of the bankruptcy);

proceeds of any of the property of the bankrupt that would be covered by the order must not be applied under Subdivision A before the application is finally determined.

(2)

If:

(a)

an application is made under a proceeds of crime law for a pecuniary penalty order; and

(b)

the person against whom the order would be made is, or later becomes, a bankrupt;

proceeds of any of the property of the bankrupt must not be applied under Subdivision A before the application is finally determined.

If circumstances arise as a result of which:

(a)

this Subdivision prevents Subdivision A from being applied to the proceeds of property of a bankrupt; or

(b)

this Subdivision no longer prevents Subdivision A from being applied to the proceeds of property of a bankrupt;

the Director of Public Prosecutions must, as soon as practicable, give the trustee written notice of the existence of the circumstances.

Subdivision B of Division 2 of Part VI of the Bankruptcy Act 1966 applies, in relation to:

(a)

a proceeds of crime order; or

(b)

an application for a proceeds of crime order;

made after the commencement of this Schedule, to any bankruptcy, even if the date of bankruptcy is before that commencement.

Add "or".

Omit "or" (last occurring).

Repeal the paragraph.

Add:

Note: A discharged bankrupt remains liable under any pecuniary penalty order because such liabilities are not provable in bankruptcy, see subsection 82(3A).

After "185Q", insert ", 185QA".

Omit all the words from and including "for a liability", substitute:

for a liability under one or more of the following:

(a)

a maintenance agreement;

(b)

a maintenance order;

(c)

a proceeds of crime law.

After "185Q", insert ", 185QA".

Insert:

(1)

A debt agreement is terminated by the passing of a special resolution to that effect by a meeting of creditors called for the purpose if:

(a)

property of the debtor is covered by a restraining order or a forfeiture order; or

(b)

a pecuniary penalty order made against the debtor is in force.

(2)

However:

(a)

paragraph (1)(a) does not apply if, when the debt agreement was made, the restraining order or forfeiture order already covered the property in question; and

(b)

paragraph (1)(b) does not apply if, when the debt agreement was made, the pecuniary penalty order was already in force against the debtor.

After "185Q", insert ", 185QA".

After "Part VI", insert "(other than Subdivision B of Division 2)".

Add:

(6)

Nothing in this Division empowers the Court to stay any proceedings under a proceeds of crime law.

Add:

(2)

The creditors may, by special resolution at a meeting called for the purpose, terminate the composition if:

(a)

property of the debtor is covered by a restraining order or a forfeiture order; or

(b)

a pecuniary penalty order made against the debtor is in force.

(3)

However:

(a)

paragraph (2)(a) does not apply if, when the composition was made, the restraining order or forfeiture order already covered the property in question; and

(b)

paragraph (2)(b) does not apply if, when the composition was made, the pecuniary penalty order was already in force against the debtor.

Add:

(5)

Nothing in this Division empowers the Court to stay any proceedings under a proceeds of crime law.

Proceeds of Crime Act 1987

Repeal the paragraph.

Repeal the section.

Omit "53,".

Repeal the paragraph.

Bankruptcy Act 1966

Omit " Proceeds of Crime Act 1987 ", substitute " Proceeds of Crime Act 2002 ".

Omit " Proceeds of Crime Act 1987 ", substitute " Proceeds of Crime Act 2002 ".

Omit " Proceeds of Crime Act 1987 ", substitute " Proceeds of Crime Act 2002 ".

Omit " Proceeds of Crime Act 1987 ", substitute " Proceeds of Crime Act 2002 ".

Insert: