Document ID: chunk:federal_register_of_legislation:F2016L01901:reg:21
Version: federal_register_of_legislation:F2016L01901
Segment Type: reg
Provision Reference: reg 21
Character Range: 14631–16220

21  Security, set‑off or escrow accounts
 (1) This section specifies an 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 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;
 (c) the account‑holder has notified the ADI of:
 (i) the purpose of the account, as mentioned in subparagraph (a)(i), (ii) or (iii), and the period of the loan, financial obligation or contract covered by the applicable subparagraph; or
 (ii) only the purpose of the account, as mentioned in subparagraph (a)(i), (ii) or (iii).
 (2) The conditions relating to an account to which subparagraph (1)(c)(i) relates are that:
 (a) no deposits have been made into the account for at least 7 years after the loan, financial obligation or contract covered by subparagraph (1)(a)(i), (ii) or (iii) has been discharged; and
 (b) no withdrawals have been made from the account for at least 7 years after the loan, financial obligation or contract covered by subparagraph (1)(a)(i), (ii) or (iii) has been discharged.
 (3) The conditions relating to an account to which subparagraph (1)(c)(ii) relates are that:
 (a) no deposits have been made into the account for at least 7 years; and
 (b) no withdrawals have been made from the account for at least 7 years.