Banking Act 1959

Part II - Provisions relating to the carrying on of banking business  

Division 2AA - Financial claims scheme for account-holders with insolvent ADIs  

Subdivision C - Payment of account-holders with declared ADI  

SECTION 16AIC   Consequences of transferred liabilities determination once certificate of transfer issued  

Application of section

(1)    
This section applies if:

(a) APRA has made a transferred liabilities determination; and

(b) APRA has issued a certificate of transfer under section 33 of the Financial Sector (Transfer and Restructure) Act 1999 stating that the transfer is to take effect.

Receiving body entitled to total payment amount

(2)    
The receiving body is entitled to be paid by APRA an amount equal to the total payment amount specified in the determination.

Reduction of rights and entitlements of account-holder

(3)    
An account-holder ' s entitlement under this Subdivision to be paid an amount in respect of a protected account kept with the declared ADI is reduced to nil.

Declared ADI liable to APRA for total payment amount

(4)    
The declared ADI is liable to pay to APRA an amount equal to the sum of the total payment amount specified in the determination.

(5)    
That liability is due and payable to APRA when the certificate of transfer comes into force.

(6)    
Despite paragraph 16AI(1)(b) , APRA does not have the right mentioned in that paragraph.