Victorian Consolidated Legislation

Financial Institutions Duty Act 1982 - SECT 29

Local Government account

29. Local Government account



(1) A municipal council may make application in the prescribed form and manner
to the Commissioner for approval of an account kept in the name of the
municipality by a bank that is a registered financial institution as a Local
Government 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 Local Government 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 Local Government account for the purposes
of this Act.

(4) An amount shall not be paid to the credit of a Local Government account
kept by a bank in the name of a municipal council unless the amount is an
amount received by the municipal council otherwise than in relation to the
carrying on of a business undertaking.

(5) Where the Commissioner is satisfied that an amount has been paid to the
credit of a Local Government account in contravention of subsection (4) the
Commissioner-

   (a)  may, by notice given to the bank by which the account is kept, cancel
        the certificate;

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



(6) In this section-

business undertaking means-

   (a)  a business of supplying electricity or water; or

   (b)  any other prescribed business- carried on by a municipal council in
        respect of which, under the Municipal Accounting Regulations 1968, it
        is required to keep a separate bank account;

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