Victorian Consolidated Legislation

Financial Institutions Duty Act 1982 - SECT 28

Credit provider's account

28. Credit provider's account



(1) A credit provider that is a registered financial institution may make
application in the prescribed form and manner to the Commissioner for approval
of an account kept in the name of the credit provider by a bank that is a
registered financial institution as a credit provider's 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 to which the
application relates as a credit provider's 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 credit provider's account for the purposes
of this Act.

(4) An amount shall not be paid to the credit of a credit provider's account
kept by a bank in the name of a credit provider unless the amount-

   (a)  is a repayment of the whole or any part of the amount financed by the
        credit provider under a credit contract or a payment of an amount
        owing to the credit provider under a continuing credit contract; or

   (b)  is an amount paid to that account from another account kept in
        Victoria by that bank or by another bank that is a registered
        financial institution in the name of that credit provider.

(5) Where the Commissioner is satisfied that-

   (a)  an amount has been paid to the credit of a credit provider's account
        in contravention of subsection (4); or

   (b)  a credit provider's account has ceased to be an account of a credit
        provider that is a registered financial institution-

the Commissioner-

   (c)  may, by notice given to the bank by which the 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 was kept.