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Biosecurity Act 1993

Pest management - Funding from levy

100O: Trust accounts for levy money

You could also call this:

“Money collected from levies must be kept in a special bank account, separate from other money.”

If a levy order says that levy money must be held in a separate trust account, you need to follow some rules. You must keep this account at a registered bank, like one that follows the Banking (Prudential Supervision) Act 1989.

You have to name the account in a way that shows it is a trust account for collecting levies. You must try to ensure the account is only used for holding levy money and that there is enough money in the account to cover what you owe to the management agency.

When you collect levies, you must put the money into the trust account on the days specified in the levy order. The money in the account is held on trust for the management agency, which means it is not available to pay other debts you might have.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4758117.

Topics:
Money and consumer rights > Banking and loans
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100N: Contents of order, or

"What a levy order must include"

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100P: Compliance audits for levy, or

"Checking people are paying the right amount of levy"

Part 5 Pest management
Funding from levy

100OTrust accounts for levy money

  1. This section applies if a levy order specifies a requirement that the funds from which levy payments must be made to the management agency must be held on trust in a separate account.

  2. For the purposes of this section, the amount outstanding to the management agency on a day by a person responsible for collecting the levy is calculated by subtracting the total of the levy payments that the person makes before that day to the management agency from the total of the amounts that subsection (4) requires the person to deposit in the account not later than a day before that day.

  3. A person responsible for collecting the levy must—

  4. keep an account—
    1. at a registered bank within the meaning of the Banking (Prudential Supervision) Act 1989; and
      1. named in a way that identifies it as a trust account kept by the person responsible for collecting the levy; and
      2. take all practicable steps to ensure that the account is used for holding only the amounts that subsection (4) requires to be deposited in it; and
        1. take all practicable steps to ensure that the balance in the account on any day is not less than the amount outstanding to the management agency on that day by the person; and
          1. on ceasing to be a person responsible for collecting the levy, continue to keep the account until all the levy money payable to the management agency for the period during which the person was responsible for collecting the levy has been paid.

            1. A person responsible for collecting the levy must deposit amounts in the account by depositing an amount equal to the levy, calculated as specified in the levy order, in the account—

            2. on the day or days specified in the order; or
              1. on a day or days calculated as specified in the order.

                1. The following amount in the account is held on trust for the management agency as levy money:

                2. the amount outstanding to the management agency on a day by a person responsible for collecting the levy; or
                  1. if the amount held is less than the amount outstanding, all the money in the account.

                    1. The amount in the account held on trust for the management agency—

                    2. is not available for the payment of any other creditor of a person responsible for collecting the levy; and
                      1. is not liable to be attached or taken in execution at the instance of any other creditor of a person responsible for collecting the levy.

                        Notes
                        • Section 100O: inserted, on , by section 39 of the Biosecurity Law Reform Act 2012 (2012 No 73).
                        • Section 100O(3)(a)(i): amended, on , by section 300(1) of the Reserve Bank of New Zealand Act 2021 (2021 No 31).