sec.97NDisposal of amount held in prescribed trust account

### sec.97N Disposal of amount held in prescribed trust account A recognised entity that is paid an amount under section 97M (1) must hold the amount in the entity’s prescribed trust account until a party to the contract or instrument becomes entitled, under this part or otherwise according to law, to a repayment or payment of the amount. Maximum penalty—200 penalty units or 1 year’s imprisonment. On a party becoming entitled to a repayment or payment of the amount, the recognised entity must dispose of the amount in accordance with the law governing the operation of the entity’s prescribed trust account. Maximum penalty—200 penalty units or 1 year’s imprisonment. Subsections (1) and (2) apply despite anything in the contract or instrument under which the amount was paid to the recognised entity. See also section 97Q , which prohibits contracting out of a provision of this Act. s 97N ins 2014 No. 46 s 69 amd 2023 No. 29 s 56 (sec.97N-ssec.1) A recognised entity that is paid an amount under section 97M (1) must hold the amount in the entity’s prescribed trust account until a party to the contract or instrument becomes entitled, under this part or otherwise according to law, to a repayment or payment of the amount. Maximum penalty—200 penalty units or 1 year’s imprisonment. (sec.97N-ssec.2) On a party becoming entitled to a repayment or payment of the amount, the recognised entity must dispose of the amount in accordance with the law governing the operation of the entity’s prescribed trust account. Maximum penalty—200 penalty units or 1 year’s imprisonment. (sec.97N-ssec.3) Subsections (1) and (2) apply despite anything in the contract or instrument under which the amount was paid to the recognised entity. See also section 97Q , which prohibits contracting out of a provision of this Act.