Queensland Law Society Amendment Rule (No. 1) 1996 (Qld)

Queensland Subordinate Legislation 1996 No. 218 Queensland Law Society Act 1952 QUEENSLAND LAW SOCIETY AMENDMENT RULE (No. 1) 1996 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Rule amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Replacement of s 4 (Application for enrolment) . . . . . . . . . . . . . . . . . . . . . 2 4 Application for enrolment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 Amendment of s 86 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 5 Insertion of new s 87A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 87A Excluded mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

s1 2 s4 Queensland Law Society Amendment (No. 1) No. 218, 1996 ˙ Short title 1. This rule may be cited as the Queensland Law Society Amendment Rule (No. 1) 1996 . ˙ Rule amended 2. This rule amends the Queensland Law Society Rule 1987 . ˙ Replacement of s 4 (Application for enrolment) 3. Section 4— omit, insert— ˙ ‘ Application for enrolment ‘ 4. An application for enrolment as a member must be made to the secretary in the approved form and be accompanied by the subscription payable to the Society.’. ˙ Amendment of s 86 4.(1) Section 86, as heading— insert— ‘ Limitation on borrowings and guarantees etc. ’. (2) Section 86, second sentence, ‘For the purposes of this rule, “client” shall be deemed to mean any’— omit, insert— ‘ (4) In this section— “client” means a’. (3) Section 86— insert— ‘ (2) A practitioner must not, without the council’s written consent— (a) guarantee the performance of a third party’s obligation in relation to an amount borrowed from a client; or

s5 3 s5 Queensland Law Society Amendment (No. 1) No. 218, 1996 (b) indemnify a client against loss because of the non-performance of a third party’s obligation in relation to an amount borrowed from the client. ‘ (3) A practitioner must not act for a client who wants to invest an amount if— (a) the amount to be invested is to be borrowed by a related person; or (b) without the council’s consent, a related person is to guarantee the performance of a third party’s obligation in relation to an amount.’. (4) Section 86(4), as numbered by this section— insert— ‘ “amount borrowed” , from a client, includes interest and any other costs payable in relation to the amount. “related person” , of a practitioner, means— (a) the practitioner’s employee, employer or partner; or (b) a member of— (i) the practitioner’s family; or (ii) the family of a person mentioned in paragraph (a); or (c) a corporation, joint venture, partnership, syndicate or trust in which a person mentioned in paragraph (a) or (b) has shares or a beneficial interest, whether or not vested in the person. 1 ’. ˙ Insertion of new s 87A 5. After section 87, schedule 2— insert— ˙ ‘ Excluded mortgages ‘ 87A.(1) A practitioner may practise in specified excluded mortgages 1 For the meaning of “member of the family”, see section 85.

s5 4 s5 Queensland Law Society Amendment (No. 1) No. 218, 1996 only if the practitioner holds current mortgage fidelity insurance. ‘ (2) A practitioner who practises in specified excluded mortgages must— (a) advise the secretary that the practitioner practises in specified excluded mortgages; and (b) give the secretary details of the practitioner’s mortgage fidelity insurance. ‘ (3) A practitioner must provide the advice and give the details mentioned in subsection (2) to the secretary as soon as practicable after— (a) the commencement of this section; or (b) if the practitioner is not practising in specified excluded mortgages at the commencement—the practitioner starts practising in specified excluded mortgages. ‘ (4) In this section— “ASC exemption” means an exemption given by the Australian Securities Commission under the Corporations Law, section 1084(2). “contributory mortgage” see section 87(2). “Corporations Law provisions” means the Corporations Law, part 7.12, divisions 2 and 5 and section 1078. “mortgage fidelity insurance” , of a practitioner, means insurance that provides fidelity insurance cover of at least $950 000 for each claim arising out of a specified excluded mortgage in relation to whose preparation the practitioner accepts instructions to negotiate or otherwise act. “practise” , in specified excluded mortgages, means accept instructions to negotiate, or otherwise act, in relation to the preparation of a specified excluded mortgage. “practitioner” includes a firm of practitioners.

s5 5 s5 Queensland Law Society Amendment (No. 1) No. 218, 1996 “specified excluded mortgage” means an excluded mortgage 2 that is also— (a) a contributory mortgage; or (b) a mortgage in relation to which a practitioner would, apart from an ASC exemption, be required to comply with the CorporationsLaw provisions.’. ENDNOTES 1. Approved by the Governor in Council on 22 August 1996. 2. The amendment approved in this rule was made by the Council of the Queensland Law Society Incorporated on 8 August 1996. 3. Notified in the gazette on 23 August 1996. 4. Laid before the Legislative Assembly on . . . 5. The administering agency is the Department of Justice. © State of Queensland 1996 2 Under the Act, section 24A— “excluded mortgage” means a mortgage other than a direct mortgage. “direct mortgage” means a mortgage for which— (a) the mortgagee is a financial institution; or (b) the mortgagee specifies the mortgagor and the mortgagor is not a person introduced to the mortgagee by a practising practitioner for the making of the mortgage.