25Payment of trust money by cheque or electronic funds transfer—the Act, s 86

25 Payment of trust money by cheque or electronic funds transfer—the Act, s 86

25 Payment of trust money by cheque or electronic funds transfer—the Act, s 86

(1) Trust money must be drawn from a licensee’s trust account in accordance with this section.

(2) Trust money must not be drawn from a licensee’s trust account other than—

(a) by cheque, or

(b) by electronic funds transfer.

(3) Each cheque must—

(a) be machine-numbered in series, and

(b) be marked “not negotiable”, and

(c) not be payable to cash, and

(d) be signed by the licensee in charge of the business.

(4) The licensee must ensure—

(a) cheques are drawn in the numerical order of the series to which they belong, and

(b) for each cheque, a record is kept of the following—

(i) the number and date of issue of the cheque,

(ii) the name of the payee,

(iii) the amount of the cheque,

(iv) details identifying the ledger account to be debited and the name and ledger reference number of the person on behalf of whom the cheque was drawn,

(v) the invoice number applicable to the cheque, if available to the licensee,

(vi) the reason for which the cheque was drawn.

(5) A licensee is taken to comply with subsection (4) if—

(a) the licensee maintains an accounting system that causes the particulars required by subsection (4) to be entered directly in the cash book required to be kept under section 27, and

(b) the particulars are entered at the same time as, and in the same operation as, the cheque is drawn.

(6) The licensee must ensure, for each electronic funds transfer, a record is kept of the following—

(a) the name of the person effecting the transfer,