Victorian Consolidated Legislation

Financial Institutions Duty Act 1982 - SECT 27

Trust fund account

27. Trust fund account



(1) An eligible person may make application in the prescribed form and manner
to the Commissioner for approval of an account kept in the name of the
eligible person by a bank that is a registered financial institution, being an
account-

   (a)  that is a dealer's trust account for the purposes of the Securities
        Industry (Victoria) Code; or

   (b)  that is a prescribed trust account required to be kept under a
        prescribed Act-

as a trust fund account for the purposes of this Act.

(2) Where an application is made under subsection (1), the Commissioner may
issue to the applicant a certificate of approval of the account as a trust
fund account for the purposes of this Act.

(3) Where a certificate under this section is produced to a bank that is a
registered financial institution, the bank shall designate the account to
which the certificate relates as a trust fund account for the purposes of this
Act.

(4) An amount shall not be paid to the credit of a trust fund account kept by
a bank in the name of an eligible person under this section unless the amount
is an amount that under the Securities Industry (Victoria) Code or the
prescribed Act, as the case may be, is an amount that may be paid to the
credit of that account.

(5) Where the Commissioner is satisfied that-

   (a)  an amount has been paid to the credit of a trust fund account in
        contravention of subsection (4); or



   (b)  a trust fund account has ceased to be an account of an eligible
        person-

the Commissioner-

   (c)  may by notice in writing given to the bank at which the trust fund
        account is kept, cancel the certificate;

   (d)  may determine a period, not exceeding one year, during which the
        person in whose name the account is kept is ineligible to make
        application under this section; and

   (e)  shall send a copy of the notice to the person in whose name the
        account is kept.

(6) In this section, eligible person means a person who is not required to be
registered as a financial institution under this Act and who is-

   (a)  a dealer; or

   (b)  a person who, under a prescribed Act under subsection (1), is required
        to pay moneys into a trust fund kept by a bank.