Victorian Consolidated Legislation

Financial Institutions Duty Act 1982 - SECT 10

Amount credited to creditor's account with debtor

10. Amount credited to creditor's account with debtor



(1) Where a debtor, at the request or on the authority of his creditor, being
a financial institution, instead of paying a debt or any part of a debt owing
by him to his creditor, credits an amount of money owing under the debt to an
account of the creditor in the books of the debtor, the creditor shall, when
he first receives notice of the amount having been so credited or upon the
expiration of three months after the amount having been so credited, whichever
first occurs, be deemed for the purposes of this Act, to have received, in
payment of the debt or that part of the debt, an amount of money equal to the
amount credited, and to have so received that amount at the place where the
books of the debtor are kept.

(2) Subsection (1) does not apply-

   (a)  in any case where section 8 or 9 applies in relation to the amount
        credited; or

   (b)  to an amount credited after 30 June 2001.

(3) Where-

   (a)  by virtue of the operation of subsection (1), duty has become payable
        in respect of an amount or amounts of money credited to the account of
        a creditor in the books of his debtor; and

   (b)  money is withdrawn by the creditor from the account-the receipt of the
        money so withdrawn is, except to the extent that the amount of that
        money, together with any moneys previously withdrawn by the creditor
        from that account being, moneys in relation to which this subsection
        has had effect, exceeds the amount or the total of the amounts
        referred to in paragraph (a), exempt from duty.