Western Australian Consolidated Acts

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TAXI ACT 1994 - SECT 36

36 .         Bonds held by operators

        (1)         In this section, unless the contrary intention appears — 

        bond means an amount of money paid or payable by a driver to an operator as security for payment of any amount which is, or may become payable by the driver to the operator;

        operator means a person who operates a vehicle as a taxi by causing another person to drive the vehicle as a taxi by providing to the person —

            (a)         the vehicle, under a lease or otherwise; and

            (b)         taxi plates for use on or in the vehicle, under a plate owner’s lease or otherwise.

        (2)         Where an operator requires a driver to pay a bond that operator shall, on receipt of the bond — 

            (a)         give to the driver — 

                  (i)         a receipt specifying the name of the driver, the amount received and the date on which it was received; and

                  (ii)         a statement specifying the purposes for which the bond may be applied;

                and

            (b)         deposit the bond to the credit of a trust account, whether a general account or an account maintained for that particular driver, and there retain it until it is dealt with in accordance with this section.

        (3)         A bond is not available for the satisfaction of any debt due to, or any claim or demand made by, a person other than the operator or the driver on whose behalf it is held and shall not be attached or taken in execution at the instance of any other person.

        (4)         An operator may apply a bond, or part of a bond, for the purposes specified in the statement referred to in subsection (2)(a)(ii) and not for any other purpose.

        (5)         Within 14 days of the application of a bond or any part of it for any purpose the operator shall provide the driver with a statement in writing setting out the amount of money applied and the purpose for which it was applied.

        Penalty: $1 000.

        (6)         A bank with which an operator maintains a trust account is not obliged to inquire into the application of moneys deposited to the credit of that account and is in no way liable in respect of any misapplication of those moneys and, except as regards the operation of the account, a bank has no right of recourse against money standing to the credit of an account that is designated as, or is evident as being, a trust account.

        (7)         Every operator shall maintain books of account of all bonds received, deposited in a trust account and dispersed or otherwise dealt with by that operator, in such a manner as to disclose the true position as regards those bonds and to enable the books to be readily and conveniently audited.

        Penalty: $1 000.

        (8)         Within 14 days of a driver ceasing to be contracted, engaged or employed to drive a taxi operated by an operator to whom the driver paid a bond, that operator shall return the bond, or so much of the bond as has not been applied in accordance with this section, to the driver, together with interest at the prescribed rate.

        Penalty: $5 000.

        [Section 36 amended by No. 4 of 2006 s. 9.]



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