Commonwealth Consolidated Acts

BANKING ACT 1959

TABLE OF PROVISIONS

           Long Title

   PART I--PRELIMINARY

   1.      Short title  
   2.      Commencement  
   2A.     Main objects of this Act  
   4.      Repeal  
   5.      Interpretation  
   6.      Application of Act  
   6A.     Cessation of application of Act to Territory  
   6B.     Application of Criminal Code  

   PART II--PROVISIONS--RELATING TO THE CARRYING ON OF BANKING BUSINESS

           Division 1--Authority to carry on banking business

   7.      Person other than a body corporate must not carry on banking business  
   8.      Only the Reserve Bank and bodies corporate that are ADIs may carry on banking business  
   9.      Authority to carry on banking business  
   9AA.    Conditions on an authority  
   9AB.    Breach of authority conditions  
   9A.     Revocation of authority etc.  
   9B.     Bodies that cease to exist or change their names  
   9C.     Publication of list of ADIs  
   9D.     Authority to carry on banking business for a limited time  
   9E.     Authority to carry on banking business in Australia for a limited time--extension  
   9F.     Authority to carry on banking business in Australia for a limited time--continuation after expiry  
   10.     APRA to be supplied with certain documents  
   11.     APRA may determine that provisions of this Act do not apply  

           Division 1AA--Authority to be a NOHC of an ADI

   11AA.   Authority to be a NOHC  
   11AAA.  Conditions on an authority  
   11AAB.  Breach of authority conditions  
   11AB.   Revocation of authority etc.  
   11AC.   Bodies that cease to exist or change their names  
   11AD.   Publication of list of NOHCs  
   11AE.   APRA may give notice to ensure that ADI has an authorised NOHC  

           Division 1A--Prudential supervision and monitoring of ADIs and authorised NOHCs

              Subdivision A--Prudential supervision and monitoring of ADIs and authorised NOHCs generally

   11AF.   APRA may make prudential standards for ADIs and authorised NOHCs  
   11AG.   Obligation to comply with the prudential standards  
   11A.    Prudential requirements may also be prescribed by the regulations  
   11B.     APRA to monitor prudential matters  
   11C.    Division not to limit operation of other provisions  

              Subdivision B--Conversion and write-off provisions

   11CAA.  Definitions  
   11CAB.  Conversion and write - off provisions  
   11CAC.  Conversion or write - off etc. not grounds for denial of obligations  

           Division 1BA--APRA's power to issue directions

              Subdivision A--Directions other than to enforce certified industry support contracts

   11CA.   APRA may give directions in certain circumstances  

              Subdivision B--Directions to enforce certified industry support contracts

   11CB.   APRA may certify an industry support contract  
   11CC.   APRA may direct parties to an industry support contract to comply with the contract  

              Subdivision C--General provisions relating to all directions

   11CD.   Direction not grounds for denial of obligations  
   11CE.   Supply of information about issue and revocation of directions  
   11CG.   Non - compliance with a direction  

              Subdivision D--Secrecy and disclosure provisions relating to all directions

   11CH.   APRA may determine that a direction is covered by secrecy provision  
   11CI.   Secrecy relating to directions  
   11CJ.   Disclosure of publicly available information  
   11CK.   Disclosure allowed by APRA  
   11CL.   Disclosure to legal representative for purpose of seeking legal advice  
   11CM.   Disclosure allowed by APRA Act secrecy provision  
   11CN.   Disclosure in circumstances set out in the regulations  
   11CO.   Disclosure for purpose  
   11CP.   Exceptions operate independently  

           Division 1B--Provisions relating to certain ADIs

   11E.    Limited application of Division 2 etc. to foreign ADIs  
   11EA.   APRA's power to apply for foreign ADI to be wound up  
   11F.    Assets of foreign ADIs  

           Division 2--Protection of depositors

              Subdivision A--General provisions relating to depositor protection

   12.     APRA to protect depositors  
   13.     ADI to supply information to APRA  
   13A.    Consequences of inability or failure of ADI etc. to meet certain requirements  
   13B.    Investigators--ADI must provide information and facilities  
   13BA.   Start of control of body corporate's business by Banking Act statutory manager  
   13C.    Banking Act statutory managers--termination of control  

              Subdivision AA--Recapitalisation directions by APRA

   13D.    Who this Subdivision applies to  
   13E.    Recapitalisation direction by APRA  
   13F.    Additional contents of a recapitalisation direction  
   13G.    Compliance with a recapitalisation direction  
   13H.    APRA must obtain expert's report on the fair value of shares etc.  
   13J.    Determination of the fair value of shares by an expert  
   13K.    Determination of the fair value of rights by an expert  
   13L.    Ascertaining the fair value of other capital instruments  
   13M.    Contravention of certain provisions does not affect the validity of recapitalisation direction etc.  
   13N.    Recapitalisation direction not grounds for denial of obligations  
   13P.    Supply of information about issue and revocation of recapitalisation directions  
   13Q.    Non - compliance with a recapitalisation direction  
   13R.    Exceptions to Part IV of the Competition and Consumer Act 2010  

              Subdivision B--Provisions dealing with control of a body corporate's business by a Banking Act statutory manager

   14A.    Banking Act statutory manager's powers and functions  
   14AAA.  Safeguards on exercise of Banking Act statutory manager's powers and functions  
   14AA.   Banking Act statutory manager's additional powers to facilitate recapitalisation  
   14AB.   Considering report before acting under section 14AA  
   14AC.   Act under section 14AA not ground for denial of obligations  
   14AD.   APRA may require a person to give information etc. for the purposes of this Division  
   14B.    Administrator in control--additional powers to recommend action by APRA  
   14C.    Banking Act statutory manager's liabilities and duties  
   14CA.   Transaction by Banking Act statutory manager not voidable under section 588FE of the Corporations Act 2001  
   14D.    Administrator in control--additional duties  
   14DAA.  Administrator in control--additional duties where action may affect financial system stability in Australia  
   14DA.   Administrator in control--additional duties where action may affect financial system stability in New Zealand  
   14E.    Termination of administrator's appointment  
   15.     Effect on directors of Banking Act statutory manager taking control of a body corporate's business  
   15A.    Effect on external administrator of Banking Act statutory manager taking control of a body corporate's business  
   15B.    Moratorium--effect of Banking Act statutory management on court and tribunal proceedings  
   15BA.   Moratorium--effect of Banking Act statutory management on enforcement process regarding property  
   15BB.   Moratorium--effect of Banking Act statutory management on disposal of property  
   15BC.   Moratorium--restrictions on exercise of third party property rights  
   15BD.   Moratorium--effect of Banking Act statutory management on supply of essential services  
   15BE.   Moratorium--effect of Banking Act statutory management on annual general meeting  
   15C.    Certain circumstances not grounds for denial of obligations  
   15D.    Application of other provisions  
   16.     Costs of statutory management  
   16A.    APRA must report to Treasurer and publish information about statutory management  
   16AA.   Exceptions to Part IV of the Competition and Consumer Act 2010  

              Subdivision C--APRA's powers to apply for ADI to be wound up

   16AAA.  APRA's powers to apply for ADI to be wound up  

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

              Subdivision A--Preliminary

   16AB.   Purpose of this Division  
   16AC.   APRA's functions relating to this Division  

              Subdivision B--Declaration of ADI

   16AD.   Declaration that Subdivision C applies in relation to ADI  
   16AE.   Advice and information for decision on making declaration  

              Subdivision C--Payment of account-holders with declared ADI

   16AF.   Payment of account - holders with declared ADI  
   16AG.   Limit on payments to account - holder with declared ADI  
   16AH.   Payment  
   16AHA.  Giving information about payments in a financial year  
   16AI.   Substitution of APRA for account - holder as ADI's creditor  
   16AIA.  APRA may make transferred liabilities determination where transfer of business  
   16AIB.  Payment amounts under transferred liabilities determination  
   16AIC.  Consequences of transferred liabilities determination once certificate of transfer issued  

              Subdivision D--Administration

   16AJ.   Requiring assistance  
   16AK.   Obtaining information relevant to determining and paying entitlements  
   16AL.   Enforcing requirement for assistance or information  
   16AM.   Recovery of overpayments  
   16AN.   APRA may delegate functions and powers under this Division  
   16AO.   APRA's costs of administration  

              Subdivision E--Account-holder's claims against ADI remaining after entitlement

   16AP.   When this Subdivision applies  
   16AQ.   Liquidator may admit debt or claim without normal proof  
   16AR.   How liquidator must pay distributions to account - holder  
   16AS.   APRA may disclose relevant personal information to liquidator  

              Subdivision F--Disclosure of information relating to new accounts

   16AT.   APRA or liquidator to disclose information to ADI  

              Subdivision G--Exceptions to Part IV of the Competition and Consumer Act 2010

   16AU.   Exceptions to Part IV of the Competition and Consumer Act 2010  

           Division 2A--Auditors of ADIs and authorised NOHCs and their subsidiaries

   16AV.   Appointed auditor's functions and duties  
   16B.    Auditors to give information to APRA on request  
   16BA.   Requirement for auditors to give information about ADIs  
   16C.    Auditor may provide information to APRA  
   16D.    Appointed auditor must notify APRA of attempts to unduly influence etc. the appointed auditor  
   16E.    Giving false or misleading information to auditor  

           Division 2B--Removal of auditors of ADIs

   17.     APRA may remove an auditor of an ADI  
   18.     Referring matters to professional associations for auditors  

           Division 2C--Enforceable undertakings

   18A.    Enforceable undertakings  

           Division 3--Governance

   19.     Disqualified persons must not act for ADIs or authorised NOHCs  
   20.     Who is a disqualified person ?  
   21.     Court power of disqualification  
   22.     Court power to revoke or vary a disqualification etc.  
   22A.    Privilege against exposure to penalty--disqualification under section 21  
   23.     APRA may remove a director or senior manager of an ADI or authorised NOHC  

           Division 3A--Covered bonds

   24.     Guide to this Division  
   25.     Application of Division  
   26.     Covered bonds  
   27.     Arrangements involving several ADIs  
   28.     Restrictions on issuing covered bonds--8% rule  
   29.      Restrictions on issuing covered bonds--APRA directions  
   30.     Cover pool monitors  
   31.     Assets that may be in cover pools  
   31A.    Maintenance of cover pools  
   31B.    Protection of certain contractual rights  
   31C.    Powers and obligations of Banking Act statutory manager or external administrator  
   31D.    Prudential standards--treatment of assets and liabilities  
   31E.    Prudential standards for covered bonds  
   31F.    APRA may direct covered bond special purpose vehicles to return certain assets  

           Division 4--Mobilization of foreign currency

   32.     Interpretation  
   33.     Transfer of foreign currency to Reserve Bank  
   34.     Payment for transferred foreign currency  
   35.     Sale of foreign currency by Reserve Bank  

           Division 5--Advances

   36.     Advance policy  

   PART IIA--ADI--MERGERS (OPERATION OF STATE AND TERRITORY LAWS)

   38A.    Operation of certain State and Territory laws relating to ADI mergers  

   PART IIB--PROVISIONS--RELATING TO THE NON-ADI LENDERS

           Division 1--Main concepts

   38B.    Meaning of non - ADI lender and Part IIB provision of finance  

           Division 2--Non-ADI lender rules

   38C.     APRA may make non - ADI lender rules for non - ADI lenders  
   38D.    Non - ADI lender rules revoked after 2 years  
   38E.    Variation and revocation of non - ADI lender rules  
   38F.     Notification and consultation regarding non - ADI lender rules  
   38G.     Which non - ADI lender rules, etc., are legislative instruments  
   38H.    Review of decisions relating to non - ADI lender rules  
   38J.     Division not to limit operation of other provisions  

           Division 3--APRA's power to issue directions

   38K.    APRA may give directions in certain circumstances  
   38L.    Non - compliance with a direction under section 38K  

   PART III--FOREIGN--EXCHANGE, FOREIGN INVESTMENT ETC.

   39.     Power to make regulations  
   39A.     Extra - territorial application of regulations  

   PART IV--GOLD

   40.     Operation of Part  
   41.     Transfer of gold out of Australia  
   42.     Delivery of gold  
   43.     Vesting of gold delivered  
   44.     Payment for gold  
   45.     Limitation of sale and purchase of gold  
   46.     Limitation on working of gold  
   47.     Application of Part  
   48.     Exemptions  

   PART V--INTEREST--RATES

   50.     Control of interest rates  

   PART VI--RECONSIDERATION--AND REVIEW OF DECISIONS

   51A.    Definitions  
   51B.    Reconsideration of decisions  
   51C.    Review of decisions  
   51D.    Statements to accompany notification of decisions  

   PART VIA--PROTECTIONS--IN RELATION TO INFORMATION

   52F.    Self - incrimination  

   PART VII--FINANCIAL--RECORDS

   60.     Keeping of financial records  

   PART VIII--POWERS--OF APRA

           Division 1--Investigations

   61.     APRA may conduct investigations  
   61A.    Investigator may require production of books etc.  
   61B.    Concealing books, accounts or documents relevant to investigation  

           Division 2--Examinations

   61C.    Notice requiring appearance for examination  
   61D.    Conduct of examinations  
   61E.    Who may be present at examinations  
   61F.    Record of examination  
   61G.    Offences  

           Division 3--Evidentiary use of certain material

   61H.    Statements made at an examination--proceedings against examinee  
   61J.    Statements made at an examination--other proceedings  
   61K.    Weight of evidence under section 61J  
   61L.    Objection to admission of statements made at examination  
   61M.    Copies of, or extracts from, certain books, accounts and documents  
   61N.    Report under section 61  
   61P.    Exceptions to admissibility of report  
   61Q.    Material otherwise admissible  

           Division 4--Information

   62.     Supply of information  

           Division 5--Miscellaneous

   62AA.   Legal professional privilege  
   62AB.   Powers of Court relating to non - compliance with this Act  

   PART IX--MISCELLANEOUS

   62A.    Notices to APRA  
   62B.    Involving APRA in proposed appointment of external administrators of ADIs and NOHCs  
   62C.    Involving APRA in applications by liquidator  
   62D.    Application by APRA for directions  
   62E.    APRA may request information from liquidator  
   63.     Restructuring of ADIs  
   64.     Conditions on consent to restructure an ADI  
   65.     ADIs etc. may be directed to comply with Act  
   65A.    Injunctions  
   65B.    Civil penalties  
   66.     Restriction on use of certain words and expressions  
   66AA.   Use of the word bank by ADIs  
   66A.    Restriction on use of expressions authorised deposit - taking institution and ADI  
   67.     Restriction on establishment or maintenance of representative offices of overseas banks  
   68.     Bank holidays  
   69.     Unclaimed moneys  
   69A.    Disclosure of information relating to unclaimed moneys  
   69B.    Powers about money of depositors who have died  
   69BA.   Institution of offence proceedings no bar to winding up  
   69C.    Conduct of directors, employees and agents  
   69D.    Disclosure of information received under Act prohibited in certain circumstances  
   69E.    Compensation for acquisition of property  
   69F.    Severability  
   70A.    Protection from liability--general  
   70AA.   Protection from liability--directions and secrecy  
   70AB.   Protection from liability--provisions do not limit each other  
   70B.    Act has effect despite the Corporations Act  
   70C.    Authorising contracts etc. for protecting depositors' interests and financial system stability  
   70D.    Borrowing funds for payments under authorised contracts etc.  
   70E.    Financial System Stability Special Account  
   70F.    Credits to the Account  
   70G.    Purposes of the Account  
   70H.    Debits to reflect reduced amounts specified in authorisations  
   71.     Regulations  
           SCHEDULE 1 State and Territory laws relating to ADI mergers
           SCHEDULE 2 Civil penalties