Banking Act 1959

Part IIB - Provisions relating to the non-ADI lenders  

Division 3 - APRA ' s power to issue directions  

SECTION 38K   APRA may give directions in certain circumstances  

(1)    
APRA may give a body corporate that is a non-ADI lender a direction to take specified action to comply with the whole or a part of a non-ADI lender rule if APRA has reason to believe that:

(a) the body corporate has contravened the non-ADI lender rule; or

(b) the body corporate is likely to contravene the non-ADI lender rule.

(2)    
The direction must:

(a) be given by notice in writing to the body corporate; and

(b) specify the ground referred to in subsection (1) as a result of which the direction is given.

(3)    
In deciding whether to give a direction under subsection (1), APRA must consider whether the body corporate has taken reasonable steps in the past to comply with the non-ADI lender rule.

(4)    
The direction may deal with the time by which, or period during which, it is to be complied with.

(5)    
The body corporate has power to comply with the direction despite anything in its constitution or any contract or arrangement to which it is a party.

(6)    
APRA may, by notice in writing to the body corporate, vary the direction if, at the time of the variation, it considers that the variation is necessary and appropriate.

(7)    
The direction has effect until APRA revokes it by notice in writing to the body corporate. APRA may revoke the direction if, at the time of revocation, it considers that the direction is no longer necessary or appropriate.

(8)    
Part VI applies to a decision to give a direction under subsection (1).