Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 16AB

    The main purpose of this Division is to provide for a scheme that:

  (a)   allows the Minister to make a declaration about an ADI if:

  (i)   APRA has applied under section   16AAA for the ADI to be wound up; or

  (ii)   a Banking Act statutory manager is in control of the ADI's business; and

  (b)   entitles account - holders who have certain protected accounts with a declared ADI to be paid certain amounts to maintain the account - holders' liquidity before they would receive payment in a winding up of the ADI; and

  (c)   substitutes APRA for those account - holders as a creditor of the declared ADI to the extent of the entitlements; and

  (d)   allows APRA to facilitate a transfer of business from the declared ADI to a receiving body under the Financial Sector (Transfer and Restructure) Act 1999 by entitling the receiving body to amounts in respect of the protected accounts.