New South Wales Consolidated Acts

LOAN FUND COMPANIES ACT 1976 - SECT 59

59 Power to suspend the acceptance of money by loan fund companies

(1) If with respect to any loan fund company the Supervisor considers that it is desirable to do so in the interests of persons who may become members of, or who may be granted options to acquire loan entitlement shares in, or who may deposit money with or otherwise lend money to, the company, the Supervisor may, by notice in writing served on the company, give to the company either or both of the following directions:

(a) a direction not to accept money in consideration of the allotment of qualifying shares or loan entitlement shares in the company or the granting of any option to acquire loan entitlement shares in the company,

(b) a direction not to accept money on deposit or otherwise on loan.

(2) Where notice of a direction under subsection (1) is served on a loan fund company, that direction does not prevent the company:

(a) from accepting the whole or any part of an amount which became due and payable to the company in respect of shares allotted, or options to acquire loan entitlement shares granted, or deemed to have been granted, by the company before the service of the notice, or

(b) with the consent of the Supervisor, from receiving money:

(i) pursuant to the powers conferred under section 26,

(ii) from a banking or finance company, or

(iii) from an officer of the company.

(3) The Supervisor may and, if so required to do so by the Minister, shall revoke a direction under subsection (1) and on so doing shall notify the loan fund company concerned in writing that the direction has been revoked.

(4) The Supervisor may at any time vary a direction under subsection (1) by notice in writing served on the loan fund company concerned.

(5) A loan fund company shall, while a direction under subsection (1) remains in force in respect of the company, comply with the direction.

Maximum penalty: 10 penalty units and, in the case of a continuing offence, a further penalty not exceeding 1 penalty unit for each day during which the offence continues.