Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Where a prescribed organization has ascertained that a person having an account with it is an undischarged bankrupt, then, unless the prescribed organization is satisfied that the account is on behalf of some other person, it shall forthwith inform the trustee, in writing, of the existence of the account and, subject to subsection (2), shall not make any further payments out of the account, except under an order of the Court of which a copy has been served on it or in accordance with written instructions from the trustee.
(2) If, within 1 month from the date on which the prescribed organization informed the trustee of the existence of the account, a copy of an order of the Court in respect of the account has not been served on the prescribed organization and it has not received written instructions from the trustee within that period in respect of the account, the prescribed organization is entitled to act without regard to any claim or right the trustee may have in respect of the account.
(2A) This section does not apply in relation to an account held by a bankrupt if the account is a supervised account in relation to the bankrupt.
(3) In this section:
"co-operative society" means:
(a) a society registered or incorporated as a co - operative housing society under a law of a State or Territory; or
(b) any other society whose principal business consists of borrowing moneys from its members and lending those moneys to its members and that is registered or incorporated under a law of a State or Territory relating to co - operative societies.
"prescribed organization" means a bank, a co - operative society or any other financial organization of a kind prescribed by the regulations for the purposes of this definition.
"supervised account" has the meaning given by section 139ZIB.