Document ID: chunk:federal_register_of_legislation:C2025C00122:section:2:p17
Version: federal_register_of_legislation:C2025C00122
Segment Type: section
Provision Reference: s 2 (pt 17/53)
Character Range: 380802–383503

security of a kind specified in the Fees and Payments Principles;
 (d) any of the following in relation to a registered scheme:
 (i) an interest in the scheme;
 (ii) a legal or equitable right or interest in an interest covered by subparagraph (i);
 (iii) an option to acquire, by way of issue, an interest or right covered by subparagraph (i) or (ii);
 (e) a financial product specified in the Fees and Payments Principles.

Permitted uses specified in Fees and Payments Principles
 (4) Without limiting paragraph (2)(g), the Fees and Payments Principles may specify that a use of a *refundable deposit or *accommodation bond is only permitted for the purposes of that paragraph if:
 (a) specified circumstances apply; or
 (b) the approved provider complies with conditions specified in, or imposed in accordance with, the Fees and Payments Principles.
Note: For paragraph (4)(a), the Fees and Payments Principles might, for example, specify that the use of a *refundable deposit is only permitted if the approved provider obtains the prior consent of the Secretary to the use of the deposit.

52N‑2  Offences relating to non‑permitted use of refundable deposits and accommodation bonds

Offence for approved provider
 (1) A *corporation commits an offence if:
 (a) the corporation is or has been an approved provider; and
 (b) the corporation uses a *refundable deposit or *accommodation bond; and
 (c) the use of the deposit or bond is not *permitted; and
 (d) both of the following apply at a particular time during the period of 5 years after the use of the deposit or bond:
 (i) an insolvency event (within the meaning of the Aged Care (Accommodation Payment Security) Act 2006) has occurred in relation to the corporation;
 (ii) there has been at least one outstanding accommodation payment balance (within the meaning of that Act) for the corporation.
Penalty: 300 penalty units.
Note: The Secretary must make a default event declaration under the Aged Care (Accommodation Payment Security) Act 2006 in relation to the corporation if paragraph (d) of this subsection applies (see section 10 of that Act).

Offence for key personnel
 (2) An individual commits an offence if:
 (a) the individual is one of the *key personnel of an entity that is or has been an approved provider; and
 (b) the entity uses a *refundable deposit or *accommodation bond; and
 (c) the use of the deposit or bond is not *permitted; and
 (d) the individual knew that, or was reckless or negligent as to whether:
 (i) the deposit or bond would be used; and
 (ii) the use of the deposit or bond was not permitted; and
 (e) the individual was in a position to influence the conduct of the entity in relation to the use of