107Dealing with trust money

107 Dealing with trust money (1) A licensed property agent commits an offence if the agent deals with trust money otherwise than as directed by the person for whom the money is held on trust. (2) A licensed property agent commits an offence if the agent— (a) receives trust money; and (b) does not pay the money into a trust account kept by the agent by the next ADI business day after the day the agent receives the money. (3) A licensed property agent commits an offence if–– (a) trust money is paid by direct deposit or electronic funds transfer into another account kept by the agent; and (b) the agent does not pay the money into a trust account on the next ADI business day after the day the agent becomes aware of the payment.

(4) A licensed property agent commits an offence if the agent pays an amount out of a trust account maintained by the agent otherwise than— (a) by electronic transfer; or (b) by using a cheque that— (i) is expressed to be payable to a person specified in the cheque; and (ii) clearly has across the front of the cheque the addition of 2 parallel transverse lines with the words ‘not negotiable’ between, or substantially between, the lines. Note This cheque is a ‘crossed cheque’ (see Cheques Act 1986 (Cwlth), s 53). (6) Trust money held by a licensed property agent— (a) is not available for payment of the debts of the agent; and (b) must not be attached, or taken in execution, under a court order or court process at the request of a creditor of the agent. (7) An authorised deposit-taking institution with which a trust account is kept must not enforce any liability that the licensed property agent may have towards the authorised deposit-taking institution against any amount held in the account, whether by way of claim, set-off, counterclaim, charge or otherwise.