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LEGAL PROFESSION UNIFORM LAW (NSW) - SECT 231
Sufficiency
231 Sufficiency
(1) If the fidelity authority is of the opinion that the fidelity fund is
likely to be insufficient to meet the fund's ascertained and contingent
liabilities, the authority may do any or all of the following-- (a) postpone
all payments relating to all or any class of claims out of the fund;
(b)
impose a levy;
(c) make partial payments of the amounts of one or more
allowed claims out of the fund with payment of the balance being a charge on
the fund;
(d) make partial payments of the amounts of 2 or more allowed
claims out of the fund on a pro rata basis, with payment of the balance
ceasing to be a liability of the fund.
(2) In deciding whether to do any or
all of the things mentioned in subsection (1), the fidelity authority-- (a)
must have regard to hardship where relevant information is known to the
authority; and
(b) must endeavour to treat outstanding claims equally and
equitably, but may make special adjustments in cases of hardship.
(3) If the
fidelity authority declares that a decision is made under subsection (1)(d)--
(a) the balance specified in the declaration ceases to be a liability of the
fidelity fund; and
(b) the authority may (but need not) at any time revoke
the declaration in relation to either the whole or a specified part of the
balance, and the balance or that part of the balance again becomes a liability
of the fund.
(4) A decision of the fidelity authority made under this section
is final and not subject to appeal or review.
Note: Section 246(8) provides
for payment to a claimant of any additional amount (less costs) recovered by
the exercise of rights of subrogation under section 246.
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