94Freezing of trust accounts of licensee

94 Freezing of trust accounts of licensee (1) This section applies if ⎯ (a) a claim has been made against the Fund in relation to any person who is or was a licensee; or (b) on the basis of information supplied by the Secretary, the Director has reasonable grounds for believing that a person who is or was a licensee has contravened any provision of this Part. (2) The Director may, by notice in writing to the manager or other principal officer of any ADI with which a licensee referred to in subsection (1) has deposited any money in a general or separate trust account, direct that all or any money standing to the credit of the account which is or may be required to satisfy a claim against the Fund⎯ (a) is not to be withdrawn or transferred from the account until further notice; and (b) is to be paid into the Fund. (3) A manager or principal officer of an ADI who receives a direction of the Director under subsection (2) must comply with the direction. (4) Despite anything to the contrary in any law, a manager or principal officer of an ADI in receipt of a direction of the Director under subsection (2)— (a) is authorised to take whatever steps are reasonably required in relation to money deposited in an account at the ADI to comply with the direction; and (b) is indemnified in respect of anything done in good faith by the manager or principal officer in taking those steps. (5) With the approval of the Minister, there may be paid out of the Fund part of any money paid into the Fund on a direction of the Director under subsection (2) that exceeds the sum of— (a) the amount necessary to satisfy any claim or claims against the Fund in relation to the licensee whose trust account was the subject of the direction; and (b) the legal and other expenses incurred in investigating or defending the claim or claims. (6) A payment out of the Fund under subsection (5) may be made subject to any conditions determined by the Director with the approval of the Minister.