74Obligations of authorised deposit-taking institutions for trust accounts—the Act, s 157(10)

74 Obligations of authorised deposit-taking institutions for trust accounts—the Act, s 157(10)

74 Obligations of authorised deposit-taking institutions for trust accounts—the Act, s 157(10)

(1) This section applies to an authorised deposit-taking institution at which a trust account is kept under this regulation.

(2) In relation to a transaction on a trust account kept under this regulation, the authorised deposit-taking institution incurs or has imputed to it the matters set out in subsection (3) that the authorised deposit-taking institution would not incur or have imputed to it if the account were kept for a person absolutely entitled to the money credited to the account.

(3) The authorised deposit-taking institution—

(a) does not have an obligation to make inquiries other than an obligation to which the authorised deposit-taking institution would be subject apart from this regulation, and

(b) does not have a liability, other than a liability to which the authorised deposit-taking institution would be subject apart from this regulation, and

(c) does not have imputed to the authorised deposit-taking institution knowledge of the right of a person to money credited to the trust account.

(4) An authorised deposit-taking institution at which the Minister keeps a trust account under this regulation has no recourse against money at credit in the account in relation to a liability of the Minister to the authorised deposit-taking institution, other than a liability in relation to the account.

(5) In this section—

recourse includes a right by set-off, counterclaim, charge or otherwise.