Banking Amendment Regulation 2013 (No. 1) (Cth)

Banking Amendment Regulation 2013 (No. 1)

Select Legislative Instrument No. 8, 2013

I, Quentin Bryce, Governor‑General of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, make the following regulation under the Banking Act 1959.

Dated              14 February 2013

Quentin Bryce

Governor‑General

By Her Excellency’s Command

Bernie Ripoll

Parliamentary Secretary to the Treasurer

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

1Name of regulation

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

2Commencement

This regulation commences on the day after it is registered.

3Authority

This regulation is made under the Banking Act 1959.

4Schedule(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Each instrument that is specified in a Schedule to this instrument is amended or repealed as set out in the applicable items in the Schedule concerned, and any other item in a Schedule to this instrument has effect according to its terms.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.