185Recovery of amounts from financial institutions

#### 185 Recovery of amounts from financial institutions (1) If: (a) an NDIS amount or NDIS amounts are paid to a financial institution for the credit of an account kept with the institution; and (b) the CEO is satisfied that the payment or payments were intended to be made to someone who was not the person or one of the persons in whose name or names the account was kept; the CEO may give a written notice to the institution setting out the matters mentioned in paragraphs (a) and (b) and requiring the institution to pay to the Agency, within a reasonable period stated in the notice, the lesser of the following amounts: (c) an amount specified in the notice, being an amount equal to the NDIS amount or the sum of the NDIS amounts; (d) the amount standing to the credit of the account when the notice is received by the institution. (2) If: (a) an NDIS amount or NDIS amounts that are intended to be made to or in respect of a person (the first person) are made to a financial institution for the credit of an account that was kept with the institution by the first person or by the first person and one or more other persons; and (b) the first person died before the payment or payments were made; the CEO may give a written notice to the institution setting out the matters mentioned in paragraphs (a) and (b) and requiring the institution to pay to the Agency, within a reasonable period stated in the notice, the lesser of the following amounts: (c) an amount specified in the notice that is equal to the NDIS amount or the sum of the NDIS amounts; (d) the amount standing to the credit of the account when the notice is received by the institution. (3) As soon as possible after issuing a notice under subsection (2), the CEO must inform the deceased estate in writing of: (a) the amount sought to be recovered from the deceased person’s account; and (b) the reasons for the recovery action. (4) A financial institution must comply with a notice given to it under subsection (1) or (2). Penalty: 300 penalty units. (5) It is a defence to a prosecution of a financial institution for failing to comply with a notice given to it under subsection (1) or (2) if the financial institution proves that it was incapable of complying with the notice. (6) If a notice is given to a financial institution under subsection (1) (payment made to wrong account) or under subsection (2) (death of person in whose name the account was kept) in respect of an NDIS amount or NDIS amounts, any amount recovered by the Agency from the institution in respect of the debt reduces any debt owed to the Agency by any other person in respect of the NDIS amount or NDIS amounts.