Commonwealth Numbered Regulations

BANKING AMENDMENT REGULATION 2013 (NO. 1) (SLI NO 8 OF 2013) - SCHEDULE 1

1  At the end of regulation 20

Add:

Security, set-off or escrow accounts

           (12)  A specified account is an account (a security, set-off or escrow account ) to which the following apply:

                     (a)  the account is held:

                              (i)  as security for a loan or another financial obligation; or

                             (ii)  for set-off or account combination purposes, or for a loan or another financial obligation; or

                            (iii)  in escrow for a contract;

                     (b)  on that basis, the ability of the holder or holders of the account to make deposits and withdrawals is restricted by:

                              (i)  the ADI; or

                             (ii)  the terms and conditions of the establishment of the account.

           (13)  The conditions relating to a security, set-off or escrow account are that:

                     (a)  no deposits have been made into the security, set-off or escrow account for at least 7 years; and

                     (b)  no withdrawals have been made from the security, set-off or escrow account for at least 7 years.