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(1) Where a client deposits money with or lends money to a dealer, the dealer shall-

(a) deposit the money in an account in a bank, not later than the 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 or lent to the dealer;

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

(c) retain the money in the bank account until the client gives him 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 the manner set out in the document referred to in paragraph (b); or

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

(2) A person who contravenes subsection (1) commits an offence and is liable on conviction to a fine not exceeding 500 penalty units or to imprisonment for a term not exceeding 2 years or to both; and shall in addition be liable to refund the money together with interest at the prevailing commercial bank rate to the client. [As amended by Securities Industry (Amendment) Act, 2000 (Act 590), sch. to s.13].