Document ID: chunk:federal_register_of_legislation:C2023A00076:clause:2_208:p1
Version: federal_register_of_legislation:C2023A00076
Segment Type: clause
Provision Reference: sch 2 cl 208 (pt 1/2)
Character Range: 85510–88043

208  Section 9
Insert:
basic banking product has the meaning given by section 961F.
basic deposit product means a deposit product that is a facility in relation to which the following conditions are satisfied:
 (a) the terms applicable to the facility (the governing terms) do not permit the amount from time to time standing to the credit of the facility to be reduced otherwise than in consequence of one or more of the following:
 (i) a withdrawal, transfer or debit on the instruction of, or by authority of, the depositor, not being on account of entry fees, exit fees or charges for the management of the funds (but this does not exclude charges for the maintenance of the facility itself);
 (ii) a payment of charges or duties on deposits into, or withdrawals from, the facility that are payable under a law of the Commonwealth or of a State or Territory;
 (iii) a payment that a law of the Commonwealth, or of a State or Territory, requires to be made out of the facility;
 (iv) a payment that an order of a court requires to be made out of the facility;
 (v) the exercise of a right to combine accounts;
 (vi) the correction of an error;
 (vii) any other circumstances specified in regulations made for the purposes of this subparagraph; and
 (b) any return to be generated for the depositor on the amount from time to time standing to the credit of the facility is an amount that is set out in, or that is calculated by reference to a rate or rates that are set out in, the governing terms; and
 (c) either:
 (i) there is no minimum period before which funds cannot be withdrawn or transferred from the facility without a reduction in the return generated for the depositor; or
 (ii) if there is such a period, it expires on or before the end of the period of 5 years starting on the day on which funds were first deposited in the facility; and
 (d) unless subparagraph (c)(ii) applies and the period referred to in that subparagraph expires on or before the end of the period of 2 years starting on the day on which funds were first deposited in the facility—funds are able to be withdrawn or transferred from the facility on the instruction of, or by authority of, the depositor:
 (i) without any prior notice to the ADI that makes the facility available; or
 (ii) if the ADI that makes the facility available is included in a class of ADIs specified in regulations made for the purposes of this subparagraph—subject to a prior notice requirement that does not exceed the period specified in those regulations in relation