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Receiverships Act 1993

21: Duty in relation to money

You could also call this:

"Keep receivership money separate to avoid trouble with the law"

Illustration for Receiverships Act 1993

If you are a receiver, you must keep money related to the property in receivership separate from other money. This means you cannot mix it with money you receive for other things or money you already have. You have to keep it separate to avoid any problems. You must follow this rule because if you do not, you can get in trouble with the law. If you fail to comply, you can be fined up to $75,000, which is a lot of money, so it is important to follow the rules.

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This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM327728.

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20: No defence or indemnity, or

"Receivers are responsible for their actions and can't blame others or get help paying for mistakes"

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22: Accounting records, or

"Keeping track of money and transactions when you're in charge of someone else's property"

21Duty in relation to money

  1. A receiver must keep money relating to the property in receivership separate from other money received in the course of, but not relating to, the receivership and from other money held by or under the control of the receiver.

  2. A person who fails to comply with subsection (1) commits an offence and is liable on conviction to a fine not exceeding $75,000.

Notes
  • Section 21(2): inserted, on , by section 67 of the Insolvency Practitioners Regulation (Amendments) Act 2019 (2019 No 28).