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Food Act 2014

Provisions relating to recognition, territorial authorities, administration, and enforcement - Cost recovery

209: Trust accounts required to be kept by persons collecting levies

You could also call this:

"Keeping levy money safe in a special account"

Illustration for Food Act 2014

If you collect levies, you might need to keep a trust account. This is because regulations made under section 207 might require it. You must keep the levy money separate, so it is not mixed with your own money. When you hold levy money, you are holding it on trust for the chief executive.

If you have levy money, you cannot use it to pay your own debts, except to pay the chief executive. Other people you owe money to cannot take the levy money to pay your debts. You must keep the trust account open until you have paid all the levy money to the chief executive.

If someone else takes over collecting the levy, this does not change your responsibilities. You still need to follow the rules about the trust account until all the levy money is paid.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2996319.

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Part 4Provisions relating to recognition, territorial authorities, administration, and enforcement
Cost recovery

209Trust accounts required to be kept by persons collecting levies

  1. If regulations made under section 207 require the operation of a trust account for any levy money by the person responsible for collecting the levy,—

  2. any amount held on trust that is due to be paid to the chief executive by the levy collector is to be treated as levy money held on trust for the chief executive; and
    1. any amount held on trust is not available for the payment of any creditor (other than the chief executive) of the levy collector, and is not liable to be attached or taken in execution at the instance of any such creditor; and
      1. a person who ceases to be responsible for collecting a levy must continue to maintain the trust account until all the levy money payable to the chief executive for the period during which the person was responsible for collecting the levy has been paid.

        1. Subsection (1)(c) does not affect any obligation or liability under this Act of any other person who has become responsible for collecting the levy concerned.