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(1) Where a client deposits money with a broker-dealer or any other licensee, that broker-dealer or other licensee shall

(a) deposit the money in a trust account in a bank, not later than die next day on which the bank is open for business after the receipt of the money and the account shall not contain any money other than money deposited with the licensee;

(b) furnish die client with a document, in the prescribed form, setting out the terms and conditions on which the deposit is made and accepted, including the purpose for which and the manner in which the money is to be used by the broker-dealer or licensee;

(c) retain the money in the bank account until the client gives the dealer a written statement acknowledging that the client has received the document referred to in paragraph (b)] and

(d) use the money only

(i) for the purpose and in die manner set out in the document referred to in paragraph (by, or

(ii) for a purpose or in a manner agreed to by the client in writing after die document referred to in paragraph (b) was furnished to the client.

(2) A person who contravenes subsection (1) is liable to pay to the Commission an administrative penalty of one thousand penalty units and shall in addition, refund the money together with interest at the prevailing commercial bank rate to the client.

(3) Where a broker-dealer or any other licensee becomes bankrupt, fells into liquidation or incurs a debt, a trust account operated by the broker-dealer or die licensee shall not be

(a) subject to die bankruptcy or liquidation proceedings; or

(b) used as a payment for the debt.