New South Wales Repealed Acts

This legislation has been repealed.

LOCAL COURTS (CIVIL CLAIMS) ACT 1970 - SECT 52A

52A Bank, building society and credit union accounts

(1) In this section, except in so far as the context or subject-matter otherwise indicates or requires:
"account" includes:

(a) a deposit account or withdrawable share account, and

(b) any record of deposit or of subscription for withdrawable shares,

but does not include an account or a record which is prescribed by the rules as exempt from the operation of this section.
"bank" means:

(a) a bank within the meaning of the Banking Act 1959 of the Commonwealth, as amended and in force for the time being, or

(b) a person who carries on State banking within the meaning of section 51 (xiii) of the Constitution of the Commonwealth .

"building society" means a building society registered under the Financial Institutions (NSW) Code or a co-operative housing society registered under the Co-operative Housing and Starr-Bowkett Societies Act 1998 .
"credit union" means a credit union registered under the Financial Institutions (NSW) Code .
"deposit-taking institution" means a bank, building society or credit union.

(2) For the purpose of determining whether an amount standing to the credit of a judgment debtor in an account in a deposit-taking institution is attachable as a debt due or accruing to the judgment debtor, the following conditions shall be disregarded:

(a) a condition that a demand must be made before any money or share is withdrawn,

(b) a condition relating to the manner in which or the place at which any such demand is to be made,

(c) a condition that a passbook, receipt or other document must be produced before any money or share is withdrawn,

(d) a condition that notice is required before any money or share is withdrawn,

(e) except in the case of an account in a Starr-Bowkett society, a condition that any money or share must not be withdrawn for any specified period,

(f) a condition prescribing a minimum amount in respect of any withdrawal from the account,

(g) a condition that a minimum balance must be maintained in the account,

(h) a condition relating to the account prescribed by the rules for the purposes of this subsection.

(3) So much of the amount standing to the credit of a judgment debtor in a withdrawable share account in a building society or credit union as is the minimum amount that must be maintained in the account in order that the judgment debtor retains membership of the building society or credit union is not attachable.

(4) Where an amount standing to the credit of a judgment debtor in an account in a deposit-taking institution is attached, the garnishee order shall be deemed to operate as a notice of withdrawal or demand for payment under the contract between the garnishee and judgment debtor in respect of the account, and that notice or demand is, while the order remains in force, irrevocable and shall be deemed to have been received by the garnishee:

(a) on the date of service of the order, or

(b) where the judgment debtor is not entitled under the contract to give a notice of withdrawal or make a demand for payment on the date of service of the order-on the date on which the judgment debtor would, but for the order, have become so entitled.

(5) Any charge on an amount standing to the credit of a judgment debtor in an account in a building society or credit union (being a charge created by an Act under which the building society or credit union is registered or regulated or by the rules of the building society or credit union) shall be disregarded for the purposes of a garnishee order, but nothing in the foregoing affects the rights of the building society or credit union to set off or appropriate the whole or any part of that amount.

(6) Where:

(a) before the expiration of the period of 21 days after service of a garnishee order on a deposit-taking institution with respect to an amount standing to the credit of a judgment debtor in an account, the garnishee pays to the registrar the debt attached to the extent of the attachment, and

(b) one of the conditions applicable to the account is that a passbook must be produced before any money or share is withdrawn,

the garnishee may, at the time of payment of that amount to the registrar, by instrument in writing signed by an officer of the deposit-taking institution, require the registrar to retain the amount so paid for any specified period not exceeding 2 months commencing on the date of that payment.

(7) Where:

(a) a registrar is required under subsection (6) by a garnishee to retain an amount for a period specified under that subsection, and

(b) the garnishee during that period makes an application for an order under this subsection on the ground that the garnishee has acted with reasonable diligence in relation to the garnishee order but nevertheless, because of the production of a current passbook relating to that amount or any part of that amount, has (whether during or before that period) paid to the judgment debtor the whole or any part of the debt attached or otherwise dealt with the debt attached so as to satisfy, as between the garnishee and the judgment debtor, the whole or any part of the debt attached,

the court may, if it thinks fit, order the registrar to repay that amount or any part of that amount to the garnishee.

(8) Where a registrar is required under subsection (6) by a garnishee to retain an amount for a period specified under that subsection, the registrar shall not pay that amount or any part of that amount to the judgment creditor:

(a) until after:

(i) the garnishee, by instrument in writing signed by an officer of the deposit-taking institution, informs the registrar, or the registrar is otherwise satisfied, that a current passbook relating to that amount or any part of that amount has, during that period, come into the possession of the garnishee at the place of keeping of the account to the credit of which that amount was standing, or

(ii) the expiration of that period,

whichever first occurs, and

(b) unless the registrar is satisfied, on such information as is available to the registrar, that no application made during that period by the garnishee for an order under subsection (7) in relation to that amount or any part of that amount is still pending.

(9) If an amount referred to in subsection (8) or any part of such an amount is ordered to be repaid to the garnishee under subsection (7), the balance (if any) only is payable to the judgment creditor.