125. Offering proceeds held in trust in separate bank account

All proceeds of the application and other moneys paid prior to allotment by any applicant in respect of securities offered to him shall, until the allotment of the securities, be held by the person making the offer of the securities upon trust for the applicant in a separate bank account that is established and kept by the person solely for the purpose of depositing the application and other moneys that are paid by applicants for those securities.

There shall be no obligation or duty on any bank with which any such moneys have been deposited to enquire into or see to the proper application of those moneys, provided that the bank acts in good faith.

Any person who contravenes subsection (1) is guilty of an offence and liable on conviction to a fine not exceeding $200,000, imprisonment for a term not exceeding 2 years or both and, in the case of a continuing offence, to a further fine for $20,000 every day or part thereof during which the offence continues after conviction.