THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.6 - MONEY AND SCRIP OF DEALERS' CLIENTS

SECTION 870   WITHDRAWAL AGAINST UNCLEARED CHEQUE  

870(1)  [Application of section]  

This section applies where the holder of a licence withdraws from a trust account of the holder some or all of the amount of a cheque:

(a)  that has been paid into the account; and

(b)  that has not been paid, and payment of which has not been refused, by the banker on which it is drawn.

870(2)  [Effect of withdrawal]  

The holder does not, merely because of the withdrawal, contravene section 869.

870(3)  [If banker refuses payment]  

If the banker later refuses payment of the cheque, the holder shall, within one business day after being notified of the refusal, pay into the trust account by cash, or by cheque that a bank or other institution draws on itself, an amount equal to the amount of the withdrawal.