Section 54H — Bankruptcy Act 1966: Duties of person entitled to deduct money owing to declared debtor

(1) Where, during the stay period in relation to a declaration of intention presented by a debtor, a copy of the declaration signed by the Official Receiver who accepted it is produced to a person who is entitled under a law of the Commonwealth, of a State or of a Territory: (a) to retain or deduct money from money payable or owing, or to become payable or owing, to the debtor; and (b) to apply the retained or deducted money toward discharging a frozen debt owed by the debtor to any person; subsections (2) and (3) apply. (2) The person shall, throughout the remainder of that period: (a) refrain from so retaining or deducting money; and (b) refrain from paying to a person (other than the debtor), or otherwise applying, money that was so retained or deducted before the signed copy was produced to the person. (3) Nothing in this section affects a person’s liability to pay money to the debtor.