Part II Regulated And Prohibited Activities

Enforceability of agreements

29 Accepting deposits in breach of general prohibition.

1

This section applies to an agreement between a person (“the depositor”) and another person (“the deposit-taker”) made in the course of the carrying on by the deposit-taker of accepting deposits in contravention of the general prohibition.

2

If the depositor is not entitled under the agreement to recover without delay any money deposited by him, he may apply to the court for an order directing the deposit-taker to return the money to him.

3

The court need not make such an order if it is satisfied that it would not be just and equitable for the money deposited to be returned, having regard to the issue mentioned in subsection (4).

4

The issue is whether the deposit-taker reasonably believed that he was not contravening the general prohibition by making the agreement.

5

“Agreement” means an agreement—

a

made after this section comes into force; and

b

the making or performance of which constitutes, or is part of, accepting deposits.