Several accounts are restricted: ask how the freezing order value limit applies
Reconcile multiple restrained holdings against the actual value wording of a freezing order and seek advised clarification, without treating an apparent excess as permission to transfer assets.
Corporate Recovery Partners
01 / 06
The same order reaches several institutions
Your business receives notices that more than one account has been restricted following a court freezing order. The amounts visible appear larger than the figure mentioned in the order. Give the complete position to the lawyer. Do not divide the figure among banks yourself, or assume that any apparent excess is available to move without clarification of the actual terms.
Identify each institution, account holder, balance date and reported restriction. Include the relevant notices and the order. Distinguish a bank balance from the amount that the bank says it has restricted, and identify other assets referred to in the documents. Avoid treating the same transferred money appearing on different statement dates as two separate holdings.
The Judicial Commission of NSW explains that the value restrained should usually not exceed the maximum likely claim including interest and costs. The actual court wording remains critical. Ask the lawyer how its limit and scope operate across your holdings and whether clarification or an application is appropriate. The general guidance does not establish that a bank must release a particular amount on your request.
Imagine two institutions each notifying restrictions while the order refers to a specified value. Adding the account balances may suggest a mismatch, but ownership, valuations and the precise restraint still require analysis. Supply the records without deciding which bank should release money first. The example identifies an issue for the lawyer, not a method for bypassing the restraint.
Keep institutions informed through the advised process
Ask who should communicate with each bank and what documents support any clarification. Preserve responses and actual implementation notices. A lawyer's request for changed treatment is not confirmation that the bank has acted. Continue observing the order while questions are addressed, and do not use a different account to defeat a restriction you believe is too broad.
Update the reconciliation when the position changes
Record the confirmed scope, balance dates and any advised change in treatment. Separate this value question from requests for permitted expenses or compliance with disclosure obligations. A single supported picture of the restrained holdings helps identify the real issue; several disconnected account screenshots cannot safely establish either the legal limit or the money the business may use.
