Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 186LB

Scope

  (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

  (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

  (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

  (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

  (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.

  (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.

  (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

  (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.

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