THE CORPORATIONS LAW

CHAPTER 7 - SECURITIES

PART 7.10 - THE NATIONAL GUARANTEE FUND

Division 3 - The National Guarantee Fund

SECTION 932   PAYMENTS OUT OF FUND  

932(1)  [Payments out of Fund]  

Subject to this Part, there shall be paid out of the Fund, in such order as the Board considers appropriate:

(a)  amounts, including costs, disbursements and interest, that the Fund provisions require to be paid in connection with claims;

(b)  all legal and other expenses incurred in investigating or defending claims or incurred in relation to the Fund or in the exercise by SEGC or the Board of the rights and powers vested in it by the Fund provisions in relation to the Fund;

(ba)  money payable to a person or partnership under section 972A;

(c)  money payable to a participating exchange under section 944;

(da)  to the extent that the money referred to in section 935 is insufficient for the purpose, payments of principal, interest and other amounts payable by SEGC in respect of money borrowed, and security given, under section 930A;

(d)  to the extent that the money referred to in section 935 is insufficient for the purpose, premiums payable in respect of contracts of insurance or indemnity entered into by SEGC under section 982;

(e)  to the extent that the money referred to in section 935 is insufficient for the purpose, the expenses incurred in the administration of the Fund, including the salaries and wages of persons employed by SEGC or the Board in relation to the Fund; and

(f)  any other money payable out of the Fund in accordance with this Chapter.

932(2)  [``claim'']  

In paragraphs (1)(a) and (b), ``claim'' means a claim under Division 6, 6A, 6B, 6C, 7, 7A or 8 or a claim that, for the purposes of Division 10, is a transferred claim in relation to a joining exchange.

932(3)  [Priority]  

Where:

(a)  an amount is payable out of the Fund in connection with a claim by a person against SEGC under Division 6, 6A, 6B, 6C, 7 or 7A that has been allowed; and

(b)  an amount is payable out of the Fund in connection with a claim by a person against SEGC under Division 8 that has been allowed;

then, regardless of the order in which those persons became respectively entitled to make those claims, the amount referred to in paragraph (a) shall be paid out of the Fund in priority to the amount referred to in paragraph (b).