Document ID: chunk:federal_register_of_legislation:C2025C00173:section:75
Version: federal_register_of_legislation:C2025C00173
Segment Type: section
Provision Reference: s 75
Character Range: 101466–103606

75  Only manager can deal with property of fund under management
 (1) A transaction or dealing affecting the property of a health benefits fund that is entered into, while the fund is under external management or terminating management, by the responsible insurer for the fund (or by a person purportedly on behalf of the fund or the responsible insurer), is void unless:
 (a) the transaction or dealing has been entered into by the manager of the fund; or
 (b) the manager consented to the transaction or dealing before it was entered into; or
 (c) the transaction or dealing was entered into by order of the Federal Court or of the Supreme Court of a State or Territory.
 (2) Subsection (1) does not apply to a payment that an ADI makes, out of an account kept with the ADI by the responsible insurer for the fund, that is made:
 (a) in good faith and in the ordinary course of the ADI's banking business; and
 (b) after the external management or terminating management began but on or before the day on which the manager gives to the ADI written notice of the appointment that began the external management or terminating management.
 (3) Subsection (1) has effect subject to any order that the Federal Court makes after the purported transaction or dealing.
 (4) A person commits an offence if:
 (a) the person is:
 (i) an officer of the responsible insurer for a health benefits fund under external management or terminating management; or
 (ii) an external administrator of any of the assets of the fund; and
 (b) the person:
 (i) purported to enter into a transaction or dealing on behalf of the responsible insurer; or
 (ii) was in any way, by act or omission, directly or indirectly concerned in, or party to, a transaction or dealing; and
 (c) the transaction or dealing is, because of the operation of subsection (1), void, or would be void apart from subsection (3).
Penalty: Imprisonment for 12 months or 60 penalty units, or both.
Note: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.