Section 139ZIE — Bankruptcy Act 1966: Bankrupt must open and maintain supervised account

Supervised account notice (1) For the purposes of this Subdivision, a supervised account notice is a written notice that is issued by the trustee of a bankrupt’s estate and that: (a) requires the bankrupt, within: (i) 10 business days after the notice is given to the bankrupt; or (ii) such longer period (if any) as is specified in the notice; to open an account (a supervised account) that complies with the following requirements: (iii) the account is kept with an ADI; (iv) the account is kept in Australia; (v) the account is denominated in Australian currency; (vi) the account is held solely in the name of the bankrupt; (vii) deposits may be made to, and withdrawals may be made from, the account; (viii) the account is designed not to have a debit balance; (ix) such other requirements (if any) as are specified in the notice; and (b) requires the bankrupt to inform the ADI, when opening the account, that the account is a supervised account; and (c) requires the bankrupt, after the account is opened, to maintain the account for so long as the notice is in force. (2) A supervised account notice must be in the approved form. Compliance with supervised account notice (3) A bankrupt to whom the supervised account regime applies must comply with a supervised account notice in force in relation to the bankrupt. When supervised account notice ceases to be in force (4) A supervised account notice relating to a bankrupt ceases to be in force if the bankrupt ceases to be a bankrupt to whom the supervised account regime applies. Note: A supervised account notice may be revoked under subsection 139ZIEA(1). Trustee to be notified of account details (5) A bankrupt to whom the supervised account regime applies must, within 2 business days after opening a supervised account, give a written notice to the trustee setting out the following information about the supervised account: (a) the name of the ADI concerned; (b) the name in which the account is held; (c) the account number; (d) the BSB number concerned. Offence (6) A person commits an offence if: (a) the person is subject to a requirement under subsection (3) or (5); and (b) the person engages in conduct; and (c) the person’s conduct breaches the requirement. Penalty for contravention of this subsection: Imprisonment for 6 months.