342Effect of service of notice of appointment

342 Effect of service of notice of appointment

342 Effect of service of notice of appointment

(1) After service on a law practice of a notice of the appointment of a receiver for the law practice and until the appointment is terminated, a legal practitioner associate of the law practice who is specified or referred to in the notice must not participate in the affairs of the practice.

Penalty: 100 penalty units.

(2) After service on an ADI of a notice of the appointment of a receiver for a law practice and until the appointment is terminated, the ADI must ensure that no funds are withdrawn or transferred from a trust account of the law practice unless—

(a) the withdrawal or transfer is made by cheque or other instrument drawn on that account signed by the receiver, a manager appointed for the law practice or a nominee of the receiver or manager; or

(b) the withdrawal or transfer is made by means of electronic or internet banking facilities, by the receiver, a manager appointed for the law practice or a nominee of the receiver or manager; or

(c) the withdrawal or transfer is made in accordance with an authority to withdraw or transfer funds from the account signed by the receiver, a manager appointed for the law practice or a nominee of the receiver or manager.

Civil penalty: 100 penalty units.

(3) After service on a person of a notice of the appointment of a receiver for a law practice and until the appointment is terminated, the person must not—

(a) deal with any of the law practice’s trust money; or

(b) sign any cheque or other instrument drawn on a trust account of the law practice; or

(c) authorise the withdrawal or transfer of funds from a trust account of the law practice—

but this subsection does not apply to an ADI, the receiver or manager for the law practice or a nominee of the receiver or manager.

Penalty: 100 penalty units.

(4) A receiver may, for the purposes of subsection (2)(b), enter into arrangements with an ADI for withdrawing money from a trust account of the law practice concerned by means of electronic or internet banking facilities.

(5) Any money that is withdrawn or transferred in contravention of subsection (2) may be recovered from the ADI concerned by the receiver or a manager for the law practice, as a debt in any court of competent jurisdiction, and any amount recovered is to be paid into a trust account of the law practice or another trust account nominated by the receiver or manager.