Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 139ZIE

Supervised account notice

             (1)  For the purposes of this Subdivision, a supervised account notice is a written notice that is issued by the trustee of a bankrupt's estate and that:

                     (a)  requires the bankrupt, within:

                              (i)  10 business days after the notice is given to the bankrupt; or

                             (ii)  such longer period (if any) as is specified in the notice;

                            to open an account (a supervised account ) that complies with the following requirements:

                            (iii)  the account is kept with an ADI;

                            (iv)  the account is kept in Australia;

                             (v)  the account is denominated in Australian currency;

                            (vi)  the account is held solely in the name of the bankrupt;

                           (vii)  deposits may be made to, and withdrawals may be made from, the account;

                          (viii)  the account is designed not to have a debit balance;

                            (ix)  such other requirements (if any) as are specified in the notice; and

                     (b)  requires the bankrupt to inform the ADI, when opening the account, that the account is a supervised account; and

                     (c)  requires the bankrupt, after the account is opened, to maintain the account for so long as the notice is in force.

             (2)  A supervised account notice must be in the approved form.

Compliance with supervised account notice

             (3)  A bankrupt to whom the supervised account regime applies must comply with a supervised account notice in force in relation to the bankrupt.

When supervised account notice ceases to be in force

             (4)  A supervised account notice relating to a bankrupt ceases to be in force if the bankrupt ceases to be a bankrupt to whom the supervised account regime applies.

Note:          A supervised account notice may be revoked under subsection 139ZIEA(1).

Trustee to be notified of account details

             (5)  A bankrupt to whom the supervised account regime applies must, within 2 business days after opening a supervised account, give a written notice to the trustee setting out the following information about the supervised account:

                     (a)  the name of the ADI concerned;

                     (b)  the name in which the account is held;

                     (c)  the account number;

                     (d)  the BSB number concerned.

Offence

             (6)  A person commits an offence if:

                     (a)  the person is subject to a requirement under subsection (3) or (5); and

                     (b)  the person engages in conduct; and

                     (c)  the person's conduct breaches the requirement.

Penalty for contravention of this subsection:        Imprisonment for 6 months.