340Application money to be held on trust

#### 340 Application money to be held on trust 340 Application money to be held on trust (cf Corporations Act s 722) > > (1) If a person offers debentures for issue under a disclosure statement, the person must hold— > > > > > (a) all application money received from people applying for debentures under the disclosure statement; and > > > > > (b) all other money paid by them on account of the debentures before they are issued; > > > > in trust under this section for the applicants until— > > > > > (c) the debentures are issued; or > > > > > (d) the money is returned to the applicants. > > > > Maximum penalty—$2,500 or imprisonment for 6 months, or both. > > > (2) If the application money needs to be returned to an applicant, the person must return the money as soon as practicable. > > > > Maximum penalty—$2,500 or imprisonment for 6 months, or both. > > > (3) An offence based on subsection (1) or (2) is an offence of strict liability.