Document ID: chunk:federal_register_of_legislation:C2025C00165:section:16ab
Version: federal_register_of_legislation:C2025C00165
Segment Type: section
Provision Reference: s 16AB
Character Range: 187010–187910

16AB  Purpose of this Division
  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.