Northern Territory Consolidated Acts Northern Territory Consolidated Acts(1) The relevant jurisdiction for an associate of a law practice whose act or omission (whether alone or with one or more other associates of the practice) gives rise to or constitutes a default of the practice is to be decided under this section.
(2) In the case of a default involving trust money received in Australia (whether or not it was paid into an Australian trust account), the relevant jurisdiction for the associate is:
(a) if the trust money was paid into an Australian trust account and if the associate (whether alone or with a co-signatory) was authorised to withdraw any or all of the trust money from the only or last Australian trust account in which the trust money was held before the default – the jurisdiction under whose law that trust account was maintained; or
(b) in any other case – the associate's home jurisdiction.
(3) In the case of a default involving trust money received outside Australia and paid into an Australian trust account, the relevant jurisdiction for the associate is:
(a) if the associate (whether alone or with a co-signatory) was authorised to withdraw any or all of the trust money from the only or last Australian trust account in which the trust money was held before the default – the jurisdiction under whose law that trust account was maintained; or
(b) in any other case – the associate's home jurisdiction.
(4) In the case of a default involving trust property received in Australia, or received outside Australia and brought to Australia, the relevant jurisdiction for the associate is the associate's home jurisdiction.
Note for subsection (4)
Section 423 provides that the Law Society may treat the default as consisting of 2 or more defaults for determining the liability of the Fidelity Fund.