Commonwealth Consolidated Acts

BANKRUPTCY ACT 1966 - SECT 169

             (1)  A trustee of the estate of a bankrupt must pay all money received by him or her on account of the estate to the credit of a single interest bearing bank account that complies with the requirements (if any) specified in the regulations.

          (1A)  The trustee must only pay into the account money received by the trustee on account of the estate of a bankrupt, but he or she may pay in money received on account of more than one estate.

          (1B)  The trustee is entitled, in his or her personal capacity, to each payment of interest on the account, less an amount equal to the bank fees or charges (if any) paid or payable on the account during the period to which the interest relates.

          (1C)  If, under subsection (1B), the trustee is only entitled to part of a payment of interest, the rest of that payment:

                     (a)  if the account contains money from only one estate--forms part of that estate; or

                     (b)  if the account contains money from more than one estate--forms part of those estates in proportion to the respective amounts of money held in the account on account of each of those estates.

          (1D)  Interest on money in the bank account is not subject to taxation under a law of the Commonwealth, a State or a Territory except as provided in Part 2 of the Bankruptcy (Estate Charges) Act 1997 .

             (2)  If a trustee of the estate of a bankrupt keeps in his or her hands any money exceeding $50 received on behalf of the estate for a period exceeding 5 days (excluding any day on which the branch of the bank at which the estate bank account is kept is not open for business), then, unless he or she satisfies the Court that his or her reason for retaining the money was sufficient:

                     (a)  he or she is liable to pay interest at the rate of 20% per annum on the amount by which the amount so retained exceeds $50; and

                     (b)  the Court may remove him or her from his or her office of trustee.

             (3)  Where a trustee is so removed from office, the Court may make such order with respect to his or her remuneration for his or her services as a trustee as the Court thinks proper and may further order that he or she pay expenses incurred by the creditors in consequence of his or her removal.

             (4)  This section does not apply in relation to the Official Trustee.

             (5)  In this section:

"bank" means an ADI or any other bank.