LEGAL PROFESSION ACT 2007 - SECT 501
Effect of service of notice of appointment
LEGAL PROFESSION ACT 2007 - SECT 501
Effect of service of notice of appointment
501 Effect of service of notice of appointment
(1) After an ADI is given a notice of the appointment of a supervisor of
trust money of a law practice and until the appointment is terminated, the ADI
must ensure that no funds are withdrawn or transferred from a trust account of
the practice unless—
(a) the withdrawal or transfer is made by cheque or
other instrument drawn on that account and signed by the supervisor or a
nominee of the supervisor; or
(b) the withdrawal or transfer is made by the
supervisor or a nominee of the supervisor by means of electronic or internet
banking facilities; or
(c) the withdrawal or transfer is made in accordance
with an authority to withdraw or transfer funds from the account signed by the
supervisor or a nominee of the supervisor.
(2) After a person, other than the
supervisor or an ADI, is given a notice of the appointment of a supervisor of
trust money of a law practice and until the appointment is terminated, the
person must not—
(a) deal with any of the practice’s trust money; or
(b)
sign any cheque or other instrument drawn on a trust account of the practice;
or
(c) authorise the withdrawal or transfer of funds from a trust account of
the practice.
Penalty—
Maximum penalty—100 penalty units.
(3) If
approved by the law society, the supervisor of trust money may, for subsection
(1) (b) , enter into arrangements with an ADI for withdrawing money from a
trust account of the law practice concerned by means of electronic or internet
banking facilities.
(4) Any money that is withdrawn or transferred in
contravention of subsection (1) may be recovered from the ADI concerned by the
supervisor as a debt and any amount recovered is to be paid into a
trust account of the law practice.
