Investment of Deposit. (a) If either the Buyer or Seller request that the Deposit be invested then the Deposit Holder is irrevocably authorised to invest the funds in its name in an interest bearing account with a Bank nominated by the Deposit Holder. (b) The Deposit is invested at the risk of the person eventually entitled to receive it. (c) The Deposit Holder will not be liable to any party by reason of delay in investing the Deposit or for failure to invest the Deposit. (d) The Deposit Holder is authorised to terminate the investment of the Deposit a reasonable time before settlement so that the Deposit and interest earned on the investment of the deposit will be available at settlement. (e) Any interest paid on such investment must be held by the Deposit Holder in trust until either the Seller or the Buyer becomes entitled to it under this Contract or at law. The interest will not be held by the Deposit Holder by way of Deposit but under an unrelated trust and under no circumstances will the Seller or the Buyer be entitled to receive any of the interest before this Contact is settled or cancelled. (f) The Buyer must provide its tax file number and any other information that the Deposit Holder requires for investment within five Business Days from the date on which the Seller asks for it. If the Buyer does not do so, the Buyer acknowledges that the Bank with whom the Deposit is invested may deduct tax from the interest earned on the Deposit at the highest marginal rate.
Appears in 4 contracts
Samples: Contract of Sale, Contract of Sale, Contract of Sale
