Bankruptcy Act 1966

PART IX - DEBT AGREEMENTS  

Division 8 - Registration of debt agreement administrators etc.  

Subdivision C - Surrender and cancellation of registration as a debt agreement administrator  

SECTION 186LB   ACCOUNT-FREEZING NOTICES - DEBT AGREEMENT ADMINISTRATION TRUST ACCOUNTS  

Scope

186LB(1)    
This section applies to a bank if:

(a)    the Inspector-General believes on reasonable grounds that:

(i) a person who is or was an administrator of a debt agreement holds or held an account with the bank; and

(ii) the account was kept, or purportedly kept, in compliance with subsection 185LD(1) ; and

(b)    at a particular time (the show cause time ), the Inspector-General asked the person:

(i) under subsection 186K(3) or 186L(3) , to give the Inspector-General a written explanation why the person should continue to be registered as a debt agreement administrator; or

(ii) under subsection 40-40(1) of Schedule 2 , to give the Inspector-General a written explanation why the person should continue to be registered as a trustee; and

(c)    if subparagraph (b)(ii) applies - the Inspector-General asked for the explanation on the basis of paragraph 40-40(1)(m) of Schedule 2 .

Giving of freezing notice

186LB(2)    
The Inspector-General may, by written notice (an account-freezing notice ) given to the bank within 42 days after the show cause time, direct the bank not to:

(a)    make a withdrawal from the account; or

(b)    permit the making of a withdrawal from the account;

except:

(c)    in accordance with the written consent of the Inspector-General; or

(d)    to recover from the account-holder an amount equal to an amount of tax (however described) that the bank has paid or is liable to pay in connection to the operation of the account; or

(e)    to discharge a liability of the account-holder to pay a fee or charge in relation to the operation of the account; or

(f)    in such circumstances (if any) as are specified in the regulations.

Duration of freezing notice

186LB(3)    
An account-freezing notice given to a bank:

(a)    comes into force when the notice is given to the bank; and

(b)    remains in force for:

(i) 42 days after the show cause time; or

(ii) if a shorter period is specified in the notice - that shorter period.

Extension of 42-day period

186LB(4)    
The Court may, on application by the Inspector-General, extend, or further extend, the 42-day period referred to in subsection (2) or subparagraph (3)(b)(i) .

Revocation of freezing notice

186LB(5)    
If an account-freezing notice is in force in relation to a bank, the Inspector-General may, by written notice given to the bank, revoke the account-freezing notice.

Copy of account-freezing notice to be given to account-holder etc

186LB(6)    
If the Inspector-General gives or revokes an account-freezing notice that relates to an account, the Inspector-General must give a copy of the account-freezing notice or the revocation notice, as the case may be, to the holder of the account.

186LB(7)    
A failure to comply with subsection (6) does not affect the validity of the account-freezing notice or the revocation notice, as the case may be.

Consent of Inspector-General

186LB(8)    
A consent under paragraph (2)(c) may be:

(a)    unconditional; or

(b)    subject to such conditions (if any) as are specified in the notice of consent.

186LB(9)    

If the Inspector-General decides to refuse to give a consent under paragraph (2)(c) , an application may be made to the Administrative Review Tribunal for review of the decision.