29Obligations in relation to designated account money

29 Obligations in relation to designated account money

Requirement to pay initial pre‑paid fees received to credit of designated account (1) A registered provider who receives, in respect of an overseas student or intending overseas student, tuition fees for a course before the student has begun the course must pay the fees to the credit of an account maintained in accordance with section 28.

Note: Providers covered by section 31 are not required to comply with this section.

(2) The provider must pay the fees into the account within 5 business days of receiving the fees.

Note: For the definition of business day, see section 2B of the Acts Interpretation Act 1901.

Requirement in relation to withdrawing money from account (3) The provider must ensure that, at all times, there is a sufficient amount (the protected amount) standing to the credit of the account to repay all tuition fees to every overseas student or intending overseas student (a relevant student): (a) in respect of whom tuition fees have been paid to the provider; and (b) who has not yet begun the course that the provider is to provide to the student. (4) An amount may be withdrawn from the account, so as to reduce the balance of the account below the protected amount, only if: (a) the amount is withdrawn to pay a refund under section 46D, 47D or 47E to, or in relation to, a relevant student; or (b) both of the following apply: (i) the provider arranges, under section 46D, for a relevant student to be offered a place in an alternative course at the provider’s expense; (ii) the amount is withdrawn to pay the alternative provider in relation to the relevant student; or (c) the amount is withdrawn to pay the TPS Director under section 50C in relation to the relevant student.

Note 1: Tuition fees of a relevant student cease to be part of the protected amount (and may therefore be withdrawn from the account) once the student begins the course that the provider is to provide to the student: see subsection (3).

Note 2: There are no limits on withdrawals from the account as long as the balance of the account remains above the protected amount.

(5) An amount withdrawn in accordance with subsection (4) must not be more than the amount of the tuition fees received by the provider in respect of the relevant student before the student begins the course. Account money not available for payment of debts etc. (6) To avoid doubt, the protected amount: (a) is not available for the payment of a debt of any creditor of the provider, other than as referred to in subsection (4); and (b) is not liable to be attached or taken in execution under the order or process of a court at the instance of any creditor of the provider, other than as referred to in subsection (4).