BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 34C Change of financial institution

BUILDING INDUSTRY FAIRNESS (SECURITY OF PAYMENT) ACT 2017 - SECT 34C

34C Change of financial institution

(1) A trustee must not transfer the retention trust account to an alternative financial institution unless—

(a) the alternative financial institution is an approved financial institution; and

(b) all amounts held in the account are transferred with the account to the alternative financial institution; and

(c) the trustee informs all contracted parties, from whom retention amounts held in the account have been withheld from payment, about the transfer as prescribed by regulation.

Penalty—

Maximum penalty—200 penalty units.

Note—

See, also, section 34B for the trustee’s obligation to inform the commissioner of closing and opening a retention trust account.

(2) When transferring the retention trust account to an alternative financial institution, the trustee may withdraw the amounts of interest credited to the account by a financial institution.

(3) In this section—


"alternative financial institution" , for a retention trust account, means a financial institution that is not the financial institution at which the account is currently kept.