Document ID: chunk:federal_register_of_legislation:C2004A04529:body:0:p3
Version: federal_register_of_legislation:C2004A04529
Segment Type: other
Provision Reference: 
Character Range: 5515–8063

the following section is inserted:

Reinvestment of interest in respect of deposits

"4B.(1) If, in the application in respect of a deposit, the depositor elects that he or she wishes interest on the deposit to be reinvested, this section applies to any interest that becomes payable on the deposit.

"(2) If the depositor in respect of a deposit for which the application was lodged before the commencement of this section elects, at any time, that he or she wishes interest on a specified deposit or specified deposits to be reinvested, this section also applies to any interest that becomes payable on any such deposit after the election is made.

"(3) If this section applies to any interest, the interest is not to be paid to the person otherwise entitled to it, but is instead to be paid

into the Income Equalization Deposits Trust Account, where it is to be added to the balance of the deposit to which it relates.

"(4) Subject to paragraph 15A(9)(c) and subsection 18B(3), interest added to the balance is taken for all purposes of this Act (other than the liability to pay interest in respect of any period before it was added to the balance) to be, and always to have been, part of the deposit to which it relates. (For example, this will mean that a request under section 17 can be made in respect of the whole deposit even if the interest was added less than 12 months before.)

"(5) To the extent that the interest relates to the investment component of a farm management bond, the adding of the interest to the balance of the deposit also increases the farm management bond by the same amount. However, this only happens to the extent that it does not cause the total of the balances of all farm management bonds of the owner to be more than $80,000.

"(6) Subsection (3) does not apply to the interest to the extent that, if it were added to the deposit, the total of the balances of all deposits in relation to the owner would be more than $300,000.".

Loan moneys to be paid into Trust Account etc.

8.    Section 8 of the Principal Act is amended by omitting from subsection (2) "Moneys borrowed under this Act shall, when the moneys become repayable," and substituting "A deposit or part of a deposit that becomes repayable must".

9.    After section 14 of the Principal Act the following sections are inserted:

Farm management bonds

"15.(1) Subject to this section, when making a deposit on or after 1 October 1992, the depositor may elect in the application form that the deposit, or a specified part of the deposit, is to