Plain language law

New Zealand law explained for everyone

Biosecurity Act 1993

Government/industry agreement for readiness or response

100ZE: Trust accounts for levy money

You could also call this:

"Money collected from a levy must be kept in a special separate bank account."

If a levy order says so, you must hold the levy money in a separate trust account. You calculate how much levy money you owe by subtracting the payments you made from the total amount you had to deposit. You must keep this account at a registered bank, like one that follows the Banking (Prudential Supervision) Act 1989.

You must use this account only for holding the levy money and make sure the balance is not less than what you owe. When you stop collecting the levy, you must keep the account open until all the money is paid. You must deposit the levy money into this account on the days or at the times specified in the levy order.

The money in the account belongs to the payee and you must hold it on trust for them. This means you cannot use it to pay other debts and it is protected from other creditors. You must keep the account separate and only use it for the levy money.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM4758151.

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100ZD: Contents of order, or

"What's included in a levy order, like who pays and how much"

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100ZF: Compliance audits for levy, or

"Checking people pay the right amount of levy"

Part 5AGovernment/industry agreement for readiness or response

100ZETrust accounts for levy money

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

  2. For the purposes of this section, the amount outstanding to the payee 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 payee 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 payee 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 payee 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 readiness or response 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 payee as levy money:

                2. the amount outstanding to the payee 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 payee—

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