Bankruptcy Act 1966

SCHEDULE 2 - INSOLVENCY PRACTICE SCHEDULE (BANKRUPTCY)  

Note: See section 4A .

PART 3 - GENERAL RULES RELATING TO ESTATE ADMINISTRATIONS  

Division 65 - Funds handling  

SECTION 65-40   HANDLING SECURITIES  

Securities must be deposited with administration account bank

65-40(1)    
The trustee of a regulated debtor ' s estate must deposit in a bank:

(a)    the bills of exchange; and

(b)    the promissory notes; and

(c)    any other negotiable instrument or security;

payable to the regulated debtor or the trustee as soon as practicable after they are received by the trustee.

Exception

65-40(2)    
If the Court gives a direction that is inconsistent with subsection (1) , that subsection does not apply to the extent of the inconsistency.

Offence

65-40(3)    
A person commits an offence of strict liability if:

(a)    the person is subject to a requirement under subsection (1) ; and

(b)    the person fails to comply with the requirement.

Penalty: 5 penalty units.

Note 1:

A defendant bears an evidential burden in relation to the matter in subsection (2) (see subsection 13.3(3) of the Criminal Code ).

Note 2:

See also section 277B (about infringement notices).

Delivery of securities

65-40(4)    
The bills, notes or other instrument or security must be delivered out on the signed request of the trustee.