52N‑2 Offences relating to non‑permitted52N‑2 Offences relating to non‑permitted use of refundable deposits and accommodation bonds

#### 52N‑2 Offences relating to non‑permitted use of refundable deposits and accommodation bonds Offence for approved provider (1) A \*corporation commits an offence if: (a) the corporation is or has been an approved provider; and (b) the corporation uses a \*refundable deposit or \*accommodation bond; and (c) the use of the deposit or bond is not \*permitted; and (d) both of the following apply at a particular time during the period of 2 years after the use of the deposit or bond: (i) an insolvency event (within the meaning of the Aged Care (Accommodation Payment Security) Act 2006) has occurred in relation to the corporation; (ii) there has been at least one outstanding accommodation payment balance (within the meaning of that Act) for the corporation. Penalty: 300 penalty units. > Note: The Secretary must make a default event declaration under the Aged Care (Accommodation Payment Security) Act 2006 in relation to the corporation if paragraph (d) of this subsection applies (see section 10 of that Act). Offence for key personnel (2) An individual commits an offence if: (a) the individual is one of the \*key personnel of an entity that is or has been an approved provider; and (b) the entity uses a \*refundable deposit or \*accommodation bond; and (c) the use of the deposit or bond is not \*permitted; and (d) the individual knew that, or was reckless or negligent as to whether: (i) the deposit or bond would be used; and (ii) the use of the deposit or bond was not permitted; and (e) the individual was in a position to influence the conduct of the entity in relation to the use of the deposit or bond; and (f) the individual failed to take all reasonable steps to prevent the use of the deposit or bond; and (g) both of the following apply at a particular time during the period of 2 years after the use of the deposit or bond: (i) an insolvency event (within the meaning of the Aged Care (Accommodation Payment Security) Act 2006 has occurred in relation to the entity; (ii) there has been at least one outstanding accommodation payment balance (within the meaning of that Act) for the entity; and (h) at the time the deposit or bond was used, the entity was a \*corporation. Penalty: Imprisonment for 2 years. Strict liability (3) Strict liability applies to paragraphs (1)(d) and (2)(g) and (h). > Note: For strict liability, see section 6.1 of the Criminal Code.