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 16AIA   APRA may make transferred liabilities determination where transfer of business  

(1)    
APRA may make a determination (a transferred liabilities determination ) if:

(a) an ADI is a declared ADI as a result of the Minister having made a declaration under section 16AD ; and

(b) APRA has made, or proposes to make, a determination under section 25 (compulsory transfer determination) of the Financial Sector (Transfer and Restructure) Act 1999 that there is to be a total transfer or partial transfer of business from the declared ADI to a receiving body (within the meaning of that Act); and

(c) the transfer of business will transfer:

(i) the liabilities of the declared ADI in respect of every protected account kept by an account-holder with the ADI; or

(ii) the liabilities of the declared ADI in respect of every protected account kept by an account-holder with the ADI, to the extent of the amount to which each of those account-holders is entitled under this Subdivision in relation to those protected accounts; and

(d) APRA is satisfied that it will be able to identify those protected accounts; and

(e) APRA has worked out:

(i) APRA ' s reasonable estimate of the total amount (the FCS amount ) to which account-holders of those protected accounts will be entitled (disregarding the determination) under section 16AF as a result of the Minister ' s declaration mentioned in paragraph (a); and

(ii) APRA ' s reasonable estimate of the total amount (the administration amount ) of the costs that would be incurred by APRA in relation to the exercise of its powers and the performance of its functions under this Division relating to the declared ADI if it did not make the determination; and

(f) APRA has worked out a total payment amount in accordance with section 16AIB ; and

(g) APRA considers that it is reasonable in the circumstances to make the determination.

(2)    
However, APRA cannot make the determination if APRA has already 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.

(3)    
The determination must be in writing.

(4)    
The determination must specify the following:

(a) the declared ADI;

(b) the receiving body;

(c) a description, in general or detailed terms, of all the protected accounts kept with the declared ADI;

(d) the FCS amount;

(e) the administration amount;

(f) the total payment amount;

(g) the FCS payment amount;

(h) the administration payment amount;

(i) any other information that APRA considers appropriate.

(5)    
A determination under subsection (1) may be varied, but not revoked, in accordance with subsection 33(3) of the Acts Interpretation Act 1901 .

(6)    
A determination made under subsection (1) is not a legislative instrument.