TRUST ACCOUNTS ACT 1973 - SECT 7
Moneys received by trustees to be paid into a trust account
TRUST ACCOUNTS ACT 1973 - SECT 7
Moneys received by trustees to be paid into a trust account
7 Moneys received by trustees to be paid into a trust account
(1) A trustee shall establish and keep in a financial institution in the State
1 or more trust accounts designated or evidenced as such into which the
trustee shall pay all trust moneys.
(1A) However, a trustee is not required
to pay trust moneys into a trust account if—
(a) the trust moneys consist of
a cheque drawn in favour of someone else; and
(b) the trustee is satisfied
the person is lawfully entitled to the moneys; and
(c) the trustee
immediately gives the person the cheque, personally, by post or at the
person’s direction.
(2) A trustee shall not pay—
(a) to the trustee’s
general trust account any moneys other than trust moneys received by the
trustee; and
(b) to a separate trust account any moneys other than trust
moneys received by the trustee for or on behalf of the person on whose behalf
or at whose direction the account was established;
but nothing in this
subsection prohibits payment into the trustees’ general trust account of
moneys received by the trustee where part of such moneys are attributable to
professional costs, statutory duties or charges and other proper outlays
already incurred or disbursed.
(3) Moneys required by this section to be paid
into a trust account shall be so paid daily save where it is not reasonably
practicable so to do in which case they shall be so paid as soon as reasonably
practicable.
(4) A person must not contravene this section.
Penalty—
Maximum penalty—
(a) 50 penalty units; or
(b) if the offence is committed
with intent to defraud—100 penalty units or 1 year’s imprisonment.