Trust account

211 Licensed promoter must have trust account

(1)

This section applies to all money raised by, or paid to, a licensed promoter (including interest)—

(a)

to meet the expenses incurred by the licensed promoter on the society’s behalf; or

(b)

to be held by the licensed promoter on the society’s behalf.

(2)

A licensed promoter must pay the money into a trust account, at a registered bank, operated either—

(a)

for the activities of the society or the licensed promoter generally; or

(b)

for a particular promotion.

(3)

No person may withdraw money paid into the trust account except—

(a)

to pay it to the society on whose behalf it was received or, at the direction in writing of the society, to a person other than the licensed promoter; or

(b)

for the purpose of paying an account rendered in accordance with section 213.

(4)

Money paid into a licensed promoter’s trust account must not—

(a)

be used to pay debts of the licensed promoter, or of a key person of the licensed promoter:

(b)

be attached or taken in execution under an order or process of a court:

(c)

pass to the Official Assignee if the licensed promoter or a key person of the licensed promoter is adjudged bankrupt.

(5)

A person who knowingly contravenes subsection (3) or subsection (4) commits an offence and is liable on conviction to a fine not exceeding $2,000.

(6)

This section does not prevent money raised by, or paid to, a licensed promoter being paid into the society’s bank account if the payment is permitted by the licensed promoter’s agreement with the society.

Compare: 1977 No 84 s 55

Section 211(5): amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).