74Purposes for which money may be withdrawn from a trust account

##### 74 Purposes for which money may be withdrawn from a trust account (1) A dealer who withdraws moneys from a trust account except for the purpose of: (a) making a payment to, or in accordance with the written directions of, a person entitled to the moneys; (b) making a payment to a stock exchange in accordance with the provisions of section 95; (c) defraying brokerage and other proper charges; (d) paying to the dealer moneys to which he is entitled, being moneys that were paid into a trust account but were not required to be so paid; or (e) making a payment that is otherwise authorized by law, is guilty of an offence. Penalty: $5,000 or imprisonment for 1 year, or both. (2) A dealer who, with intent to defraud, withdraws moneys from a trust account is guilty of an offence. Penalty: $10,000 or imprisonment for 2 years, or both. (3) Except as otherwise provided in this Part, moneys held in a trust account are not available for payment of the debts of a dealer or liable to be paid or taken in execution under the order or process of a court. (4) Nothing in this Part takes away or affects a lawful claim or lien that a person has against or on any moneys held in a trust account or against or on any moneys received for the purchase of securities or from the sale of securities before those moneys are paid into a trust account. (5) A dealer is not guilty of an offence against subsection (1) by reason only that he withdraws from a trust account an amount that is the whole or any part or the amount of a cheque that has been paid into the account but that has not been paid, and has not been refused payment, by the banker on which it is drawn. (6) Where a dealer withdraws from a trust account an amount that is the whole or any part of the amount of a cheque that has been paid into the account but that has not been paid by the banker on which it is drawn and the banker later refuses payment of the cheque, the dealer shall forthwith pay into the trust account by cash or bank cheque an amount equal to the first‑mentioned amount. (7) Where a dealer fails to comply with subsection (6): (a) he is guilty of an offence; and (b) where the dealer is a member of a stock exchange the failure shall, for the purposes of Part IX, be deemed to be a defalcation by the dealer. Penalty: $2,500 or imprisonment for 6 months, or both.