Div 2Deposits.

Division 2.—Deposits. Prior deposits under State Acts. No. 4. 1932, s. 7. 24.—(1.) Where, at the commencement of this Act, any amount or security is, in pursuance of any State Act specified in section eight of this Act, held by a State or by an authority of a State by way of deposit on account of a company carrying on life insurance business, the State or authority shall forthwith pay the amount, or transfer the security, to the Treasurer. (2.) Any amount or security on account of a company which is paid or transferred to the Treasurer in compliance with the last preceding sub-section shall, to the extent of the deposit required to be lodged by that company under this Act, be held by the Treasurer as, or as part of, the deposit so required. Deposit under Insurance Act 1932–1937. 25. Any deposit lodged with the Treasurer in pursuance of the Insurance Act 1932–1937 by a company in respect of life insurance business and held by the Treasurer immediately prior to the commencement of this Act shall thereafter continue to be held by the Treasurer as, or as part of, the deposit required to be lodged by that company under this Act. Deposits by existing companies. No. 4, 1932, s. 12. 26.—(1.) Subject to this Act, a company carrying on life insurance business in Australia immediately prior to the commencement of this Act shall deposit with the Treasurer money or approved securities or both to the value of Fifty thousand pounds. (2.) Where a company carrying on life insurance business in Australia immediately prior to the commencement of this Act satisfies the Commissioner that its net liability, as ascertained at the latest actuarial valuation, in respect of that business is less than Two hundred and fifty thousand pounds, the company shall deposit with the Treasurer money or approved securities or both to the value of One thousand pounds for every Five thousand pounds of the amount which, in the opinion of the Commissioner, is the net liability of the company. (3.) Where a deposit lodged under the last preceding sub-section is less than Fifty thousand pounds, the amount deposited shall be increased, within nine months after the date as at which each and every subsequent actuarial valuation is made, by One thousand pounds in respect of every Five thousand pounds by which the net liability of the company disclosed at that valuation exceeds the amount of the net liability taken into account in fixing the amount of its aggregate deposits previously lodged under this Act, until the amount deposited reaches Fifty thousand pounds. Deposit in case of foreign company. Ibid. s. 12 27. A foreign company not carrying on life insurance business in Australia immediately prior to the commencement of this Act shall, before carrying on that business in Australia, deposit with the Treasurer, money or approved securities or both to the value of Fifty thousand pounds. Deposit in case of new life insurance companies. Ibid. s. 13 28.—(1.) A company incorporated in Australia (whether before or after the commencement of this Act) not carrying on life insurance business in Australia immediately prior to the commencement of this Act shall, before carrying on life insurance business in Australia, deposit with the Treasurer money or approved securities or both to the value of Five thousand pounds. (2.) The company shall thereafter deposit annually with the Treasurer money or approved securities or both to the value of Five thousand pounds, until the deposit reaches the value of Fifty thousand pounds: Provided that in the case of a company having no shareholders the annual deposit under this sub-section shall be One thousand pounds until the deposit reaches the value of Fifty thousand pounds: Provided further that the aggregate amount deposited shall not at any time be less than the aggregate amount which would be required by this Act to be deposited if the company had been carrying on life insurance business in Australia immediately prior to the commencement of this Act. Investment of sums deposited. No. 4, 1932, s. 18. 29. Every sum of money deposited by a company in pursuance of this Act shall be invested by the Treasurer in such approved securities as the company selects or, in default of selection within fourteen days after the deposit has been made, in such approved securities as the Treasurer determines. Deposits port of assets of company. 30. All deposits by a company in pursuance of this Act shall be deemed to form part of the assets of the company, and all interest accruing due on the deposits or the securities in which they are for the time being invested shall be paid to the company. Certificate as to nature and extent of deposit. Ibid. s. 19. 31. The Secretary to the Department of the Treasury, shall, on demand by a company, furnish to the company a certificate in writing, setting out the nature and extent of any deposit held by the Treasurer under this Act in respect of the company together with particulars of the securities (if any) forming the whole or part of the deposit. Deposits by companies acquiring business of other companies. Ibid. s. 14. 32. If the Commissioner is satisfied that any company has acquired the life insurance business of any other company, a deposit by the acquiring company to the extent which would be required of that company by this Act if it carried on the business of that other company in addition to its own business shall, if the Commissioner so certifies, be a sufficient compliance with the requirements of this Division. Increase of deposit where securities have depreciated. Ibid. s. 20. 33.—(1.) If the Treasurer is satisfied that by reason of depreciation in the value of securities or other cause the value of money and approved securities deposited by a company with him falls short of the value required by this Act, he may, by notice in writing, require the company to deposit with him money or approved securities or both to a value deemed by him to be sufficient to bring the amount of the deposit to the value required by this Act. (2.) A notice under this section shall not be issued until after the Treasurer has given an opportunity to the company to be heard in connexion with the matter. (3.) Any company which fails to deposit with the Treasurer money or approved securities or both as required by him under this section shall be guilty of an offence. Deposits to be security to policy owners. No. 4, 1932, s. 21. 34.—(1.) Where in pursuance of Division 3 of this Part a company establishes and maintains one statutory fund only, the amount of the deposit lodged by the company under this Act shall, subject to this Act, be and remain as a security for the discharge of the liabilities of that statutory fund in respect of policies. (2.) Where in pursuance of Division 3 of this Part a company establishes and maintains more than one statutory fund, then in respect of every such statutory fund such portion of the amount of that deposit as the company with the approval of the Commissioner determines shall, subject to this Act, be and, remain as a security for the discharge of the liabilities of that statutory fund in respect of policies. (3.) The amount or the portion of the amount of any such deposit which is a security for the payment of liabilities of a statutory fund in respect of policies shall not be applicable in the discharge of any other liabilities of the company until the first-mentioned liabilities have been discharged or otherwise provided for to the satisfaction of the Commissioner. Responsibility for lost securities. Ibid. s. 23 35. If any money or securities held by the Treasurer as, or as part of, the deposit required to be lodged by a company under this Act are, while so deposited, lost, stolen, destroyed or damaged, the injury occasioned to all persons interested in the moneys or securities shall be made good out of moneys to be appropriated by the Parliament for the purpose. Substitution of deposits. Ibid. s. 26 36.—(1.) A company may at any time substitute for any security held by the Treasurer as, or as part of, the deposit required to be lodged by the company under this Act any other approved security, but so that the total amount then deposited is not less than the amount required by this Act and any security so substituted shall be subject to the same charge or liability as the security withdrawn. (2.) Any company which makes any such substitution shall be entitled to obtain from the Secretary to the Department of the Treasury, and the Secretary shall issue to the company, a certificate in writing of the substitution so made and a receipt for the substituted security, and the company shall lodge the certificate with the Commissioner. (3.) Where a company ceases to carry on life insurance business in Australia, the Treasurer may permit the withdrawal of the whole of the money or securities held by him as the deposit required to be lodged by the company under this Act or such portion of the money or securities as he considers reasonable having regard to the liabilities of the company under policies registered by the company in Australia.