New South Wales Consolidated Regulations

PROPERTY, STOCK AND BUSINESS AGENTS REGULATION 2003 - REG 26

26 Payment of trust money by cheque or electronic funds transfer

(1) Trust money must not be drawn from a licensee’s trust account otherwise than by cheque or electronic funds transfer in accordance with this clause.

(2) Each cheque must:

(a) be machine numbered in series, and

(b) be marked “not negotiable”, and

(c) not be payable to cash, and

(d) contain the name of the licensee or (if appropriate) of the licensee’s firm and the words “Trust Account”, and

(e) be signed by the licensee or another person authorised by or under clause 33 to sign the cheque.

(3) The licensee must ensure that cheques are drawn in the numerical order of the series to which they belong and that for each cheque a record is kept of:

(a) the number and date of issue of the cheque, the name of the payee and the amount of the cheque, and

(b) details identifying the ledger account to be debited and the name and ledger reference number of the person on whose behalf the cheque was drawn, and

(c) the reason for which the cheque was drawn.

(4) If the licensee maintains an accounting system that (at the same time as that at which, and in the same operation as that in which, a cheque is drawn) causes the particulars required by subclause (3) to be entered directly in the cash book required to be kept under clause 28, the entry of the particulars in the cash book is a sufficient compliance with the record keeping requirements of subclause (3).

(5) The licensee must ensure that, for each electronic funds transfer, a record is kept of:

(a) the name of the person effecting the transfer and, if the transfer is effected under the direction of some other person, or under an authority delegated under clause 33, the name of the person under whose direction or under whose delegation the transfer is effected, and

(b) the reference number or other particulars sufficient to identify the transfer, the date of the transfer, the name of the payee and the amount transferred to or from each ledger account, and

(c) details identifying the ledger accounts to be debited and the name and ledger reference number of each principal on whose behalf the transfer was made, and

(d) particulars of the reason for the transfer.

Maximum penalty: 40 penalty units in the case of a corporation or 20 penalty units in any other case.