Banking Amendment Regulation 2013 (No. 1)

Select Legislative Instrument No. 8, 2013

Dated              14 February 2013

Quentin Bryce

Governor‑General

By Her Excellency’s Command

Bernie Ripoll

Contents

1............ Name of regulation.............................................................................. 1

2............ Commencement................................................................................... 1

3............ Authority............................................................................................. 1

4............ Schedule(s)......................................................................................... 1

Schedule 1—Amendment of the Banking Regulations 1966                       2

1  Name of regulation

                   This regulation is the Banking Amendment Regulation 2013 (No. 1).

2  Commencement

                   This regulation commences on the day after it is registered.

3  Authority

                   This regulation is made under the Banking Act 1959.

4  Schedule(s)

                   Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.

Schedule 1—Amendment of the Banking Regulations 1966

1  At the end of regulation 20

Add:

Security, set‑off or escrow accounts

           (12)  A specified account is an account (a security, set‑off or escrow account) to which the following apply:

                     (a)  the account is held:

                              (i)  as security for a loan or another financial obligation; or

                             (ii)  for set‑off or account combination purposes, or for a loan or another financial obligation; or

                            (iii)  in escrow for a contract;

                     (b)  on that basis, the ability of the holder or holders of the account to make deposits and withdrawals is restricted by:

                              (i)  the ADI; or

                             (ii)  the terms and conditions of the establishment of the account.

           (13)  The conditions relating to a security, set‑off or escrow account are that:

                     (a)  no deposits have been made into the security, set‑off or escrow account for at least 7 years; and

                     (b)  no withdrawals have been made from the security, set‑off or escrow account for at least 7 years.