A Victorian agency's principal is overseas when a landlord's payment from trust falls due. Who else may sign the cheque or authorise the EFT?
Correct Answer
C) An employee registered with the institution as a signatory
The CAV guide says the principal agent or officer in effective control must sign trust cheques and authorise EFTs. If they are not available, an employee who is registered as a signatory to the agency's trust account with the authorised financial institution may sign and authorise payments.
Why This Is the Correct Answer
When the principal is unavailable, a registered signatory employee may authorise trust payments.
Why the Other Options Are Wrong
Background Knowledge for Finance Taxation
Exam Tip for Finance Taxation
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A Victorian agency receives a tenant's rent by EFT on a Thursday. By when must its trust accounting records be updated for this transaction?
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A Victorian landlord asks the property manager to draw this month's rent from trust as a cheque made out to 'cash' so it can be cashed anywhere. How should the agency respond?