sec.10Disbursements

sec.10 Disbursements

A trustee must not draw against or cause any payment to be made from a trust account kept by the trustee for a particular matter conducted by the trustee for a person unless— the amount of the withdrawal or payment is not more than the amount of cleared funds in the account for the matter; and if the trustee draws a cheque under section 12 (1) of the Act , the cheque is signed by— if the trustee is an individual—the trustee or a person appointed by the trustee; or if the trustee is a partnership—a partner. Maximum penalty—10 penalty units. If the trustee draws a cheque under section 12 (1) of the Act , the trustee must also ensure the following particulars are written on the trustee’s cheque butt or other document— the date the cheque is drawn; the name of the person to whom the cheque is made payable; the name of the person on whose behalf the cheque is drawn; a brief description of the matter for which the cheque is drawn; the amount withdrawn. Maximum penalty—10 penalty units. Also, if a payment is made from a trust account by a cheque drawn on, or permitting or enabling payment to be made by, a financial institution, the trustee must ensure that the name of the person beneficially entitled to the trust moneys is written on— the trustee’s cheque; and the trustee’s cheque butt or other document. Maximum penalty—10 penalty units. A trustee must keep each cheque butt or other document containing the particulars mentioned in subsection (2) or (3) securely in the trustee’s records. a cheque requisition form s 10 amd 2024 SL No. 22 s 7 (sec.10-ssec.1) A trustee must not draw against or cause any payment to be made from a trust account kept by the trustee for a particular matter conducted by the trustee for a person unless— the amount of the withdrawal or payment is not more than the amount of cleared funds in the account for the matter; and if the trustee draws a cheque under section 12 (1) of the Act , the cheque is signed by— if the trustee is an individual—the trustee or a person appointed by the trustee; or if the trustee is a partnership—a partner. Maximum penalty—10 penalty units. (sec.10-ssec.2) If the trustee draws a cheque under section 12 (1) of the Act , the trustee must also ensure the following particulars are written on the trustee’s cheque butt or other document— the date the cheque is drawn; the name of the person to whom the cheque is made payable; the name of the person on whose behalf the cheque is drawn; a brief description of the matter for which the cheque is drawn; the amount withdrawn. Maximum penalty—10 penalty units. (sec.10-ssec.3) Also, if a payment is made from a trust account by a cheque drawn on, or permitting or enabling payment to be made by, a financial institution, the trustee must ensure that the name of the person beneficially entitled to the trust moneys is written on— the trustee’s cheque; and the trustee’s cheque butt or other document. Maximum penalty—10 penalty units. (sec.10-ssec.4) A trustee must keep each cheque butt or other document containing the particulars mentioned in subsection (2) or (3) securely in the trustee’s records. a cheque requisition form