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Rules of Practice 1994 (S.R. 1994, No. 229)
Requested:  28 Mar 2017
Consolidated as at:  17 Mar 2006

Division 9 - Money in transit

41. Money in transit

A firm that receives money from another person with instructions to pay or endorse and deliver it to a third person must comply with those instructions –

(a) before the end of the next banking day or as soon as practicable after the next banking day; or

(b) no later than the day authorized by the person from whom the money was received, if that day is later than the next banking day.

42. Money in transit ledger

(1) A firm must maintain a ledger in respect of money to which rule 41 applies.
(2) A firm must ensure that the following details are recorded in a ledger within 7 days of the receipt of the money:

(a) the name of the person from whom the money was received;

(ab) the name of the person on whose behalf the money was received;

(b) the amount of money received;

(c) the form in which the money was received;

(d) the date of receipt of the money;

(e) the name of the person to whom the money is to be paid or endorsed and delivered;

(f) the day on which the money is to be paid or endorsed and delivered, if it is later than the next banking day;

(g) the word "paid", when that money is paid or endorsed and delivered.

(3) A firm must provide a statement of account in respect of each ledger to the person on whose behalf the money was received –

(a) within 28 days of receipt of the money; or

(b) if it is unreasonable or inappropriate to do so within that period, as soon as practicable.



CURRENT VIEW: 31 Dec 1994 - 1 Oct 2016
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