Pursuant to section 50 of the Public Trust Act 2001 ("the Act"), the following notice is given.
N o t i c e
1. Title and commencement-(1) This notice may be cited as the Public Trust Common Fund Interest Rules Notice 4 March 2004.
2. Interpretation-(1) Unless the context otherwise requires:
"agency deposit" means a deposit (not being an investment deposit) held as agent or attorney;
"call deposit" means a deposit (not being an agency deposit, an investment deposit, a protection deposit, a special deposit or a trust deposit) held in the ordinary course of administration, and determined by Public Trust to be held at call;
"deposit" means a sum of money held by Public Trust belonging to any estate, which money for the time being forms part of the Common Fund;
"investment deposit" means a deposit held at call or otherwise as an investment under section 51 of the Act;
"protection deposit" means a deposit, held at call, of tuition, boarding, accommodation or other fees by or on behalf of a student enrolled at a Private Training Establishment within the meaning of Part 18 of the Education Act 1989;
"special deposit" means a deposit held other than at call on behalf of the Crown, or any local authority within the meaning of the Local Government Act 1974;
"trust deposit" means a deposit (not being an agency deposit, an investment deposit, a protection deposit or a special deposit) held on trust:
(i) for persons not of full age or capacity; or
(ii) for beneficiaries not entitled to payment at call; or
(iii) otherwise than at call.
(2) Expressions defined in the Act have the same meaning in this notice as they do in the Act.
3. Calculation and payment of Common Fund interest-(1) Subject to paragraphs 4 and 5 of this notice, interest is calculated and paid on the balance of a deposit standing to the credit of any estate at the end of each day.
(2) Despite subparagraph (1), interest on an investment deposit repayable at the end of a fixed term:
(i) is calculated daily; but
(ii) is not payable (unless otherwise agreed by Public Trust and the principal) until the end of the fixed term.
4. Criteria for determining the dates or times for starting or stopping Common Fund interest-(1) Subject to subparagraphs (2), (3) and (4), interest on a deposit:
(i) starts on the day the deposit is received by Public Trust; and
(ii) stops at the end of the day immediately preceding the day on which the deposit ceases to be held by Public Trust.
(2) A trust deposit representing income received by Public Trust (not being Common Fund interest) on terms requiring that income to be accumulated:
(i) is capitalised quarterly on the 1st days of January, April, July and October in each year; but
(ii) until so capitalised, does not bear interest.
(3) A deposit representing Common Fund interest paid on any other deposit (other than an investment deposit) on terms requiring that interest to be accumulated:
(i) is capitalised quarterly on the 1st days of January, April, July and October in each year; but
(ii) until so capitalised, does not bear interest.
(4) A deposit representing Common Fund interest paid on an investment deposit repayable at call, unless otherwise agreed by Public Trust and the principal:
(i) is capitalised quarterly on the 1st days of January, April, July and October in each year; but
(ii) until so capitalised, does not bear interest.
5. Deposits that do not carry Common Fund interest-(1) This paragraph applies to a deposit that is paid by Public Trust to the Crown Bank Account for the credit of the Treasury by virtue of:
(i) section 74 of the Public Finance Act 1989; or
(ii) any other authority.
(2) A deposit to which this paragraph applies does not carry interest.
(3) Despite subparagraph (2), interest shall be calculated and credited on a deposit to which this paragraph applies until that deposit has been so identified and set apart in the accounts of Public Trust.
(4) Upon a deposit to which this paragraph applies being so identified and set apart in the accounts of Public Trust all accumulations of interest (if any) on the deposit shall be refunded to Public Trust.
6. Revocation of notice and transitional provisions-
(1) The Public Trust Common Fund Interest Rules Notice
7 March 2002 is revoked.
(2) The rules notified in this notice take effect from and including 1 March 2004.
Dated at Wellington this 1st day of March 2004.
PAT WAITE, Chief Executive, Public Trust.