National Consumer Credit Protection Act 2009

CHAPTER 2 - LICENSING OF PERSONS WHO ENGAGE IN CREDIT ACTIVITIES  

PART 2-5 - FINANCIAL RECORDS, TRUST ACCOUNTS AND AUDIT REPORTS  

Division 3 - Trust accounts of credit service licensees  

SECTION 98   OBLIGATION FOR CREDIT SERVICE LICENSEES TO MAINTAIN TRUST ACCOUNT  
Requirement to maintain trust account

98(1)    

The credit service licensee must maintain one more trust accounts (the trust account ) in accordance with this section.

Civil penalty: 5,000 penalty units.

Requirements for trust accounts

98(2)    
The trust account must be maintained with an Australian ADI (within the meaning of section 9 of the Corporations Act 2001 ).

98(3)    
The trust account must be designated as the credit service licensee ' s trust account.

Offence

98(4)    

The credit service licensee commits an offence if:

(a) the credit service licensee is subject to a requirement under subsection (1); and

(b) the credit service licensee engages in conduct; and

(c) the conduct contravenes the requirement.

Criminal penalty: 6 months imprisonment.