THE CORPORATIONS LAW

CCH Note: Part 13 of the Corporations Act 1989, inserted by sec 6 of No 110 of 1990, Sch 1 (effective 1 January 1991), begins as follows:

PART 13 - THE CORPORATIONS LAW
THE CORPORATIONS LAW 82
The Corporations Law is as follows:...

CHAPTER 7 - SECURITIES

PART 7.6 - MONEY AND SCRIP OF DEALERS' CLIENTS

SECTION 869 WITHDRAWALS FROM TRUST ACCOUNT

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869(1) [Withdrawals which can be made]

A licensee must not withdraw money from a trust account except:

(a) to make a payment to, or in accordance with the written directions of, a person entitled to the money;

(b) to make a payment under section 889 to a stock exchange;

(c) to defray brokerage or any other proper charge;

(d) to pay to the licensee money to which the licensee is entitled, being money that was paid into the trust account but need not have been so paid; or

(e) to make a payment that is otherwise authorised by any law of the Commonwealth or of this or any other jurisdiction.

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869(2) [No effect on claims or liens]

Nothing in this Part affects a lawful claim or lien that a person:

(a) has against or on money held in a trust account of a person; or

(b) has, before money received for the purchase of securities or from the sale of securities is paid into a trust account of a person, against or on that money.

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869(3) [Contravention an offence]

A person who contravenes subsection (1) is guilty of an offence.

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869(4) [Intent to defraud]

A person who, with intent to defraud, contravenes subsection (1) is guilty of an offence.

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