88Application money to be held on trust

#### 88 Application money to be held on trust 88 Application money to be held on trust (cf Corporations Act s 722) > > (1) If a person offers shares for issue or sale under a disclosure statement, the person must hold— > > > > > (a) all application money received from people applying for shares under the disclosure statement; and > > > > > (b) all other money paid by them on account of the shares before they are issued or transferred; > > > > in trust under this section for the applicants until— > > > > > (c) the shares are issued or transferred; 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.