Document ID: chunk:federal_register_of_legislation:C2025C00165:section:13a:p4
Version: federal_register_of_legislation:C2025C00165
Segment Type: section
Provision Reference: s 13A (pt 4/5)
Character Range: 118887–121365

(b) second, the ADI's debts (if any) to APRA under section 16AO;
 (c) third, the ADI's liabilities (if any) in Australia in relation to protected accounts that account‑holders keep with the ADI;
 (d) fourth, the ADI's debts (if any) to the Reserve Bank;
 (e) fifth, the ADI's liabilities (if any) under an industry support contract that is certified under section 11CB;
 (f) sixth, the ADI's other liabilities (if any) in the order of their priority apart from this subsection.
 (3AA) Subsection (3) does not constrain:
 (a) the exercise of powers or the performance of functions under this Act of a Banking Act statutory manager of an ADI; or
 (b) an entity acting at the direction or request of a Banking Act statutory manager of an ADI exercising powers or performing functions under this Act.
 (3A) The assets of an ADI are taken for the purposes of subsection (3) not to include any interest in an asset (or a part of an asset) in a cover pool for which the ADI is the issuing ADI.

ADI's assets must at least equal its deposit liabilities
 (4) An ADI commits an offence if:
 (a) it does not hold assets (excluding goodwill and any assets or other amount excluded by the prudential standards for the purposes of this subsection) in Australia of a value that is equal to or greater than the total amount of its deposit liabilities in Australia; and
 (b) APRA has not authorised the ADI to hold assets of a lesser value.
Penalty: 200 penalty units.
Note 1: Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.
Note 2: If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.
 (4A) For the purposes of subsection (4):
 (a) the ADI's deposit liabilities are taken not to include an amount equal to the total of the face values of all of the covered bonds issued by the ADI; and
 (b) the assets of the ADI are taken not to include:
 (i) any interest in an asset (or a part of an asset) in a cover pool for which the ADI is the issuing ADI; or
 (ii) any loan to a covered bond special purpose vehicle that relates to an asset (or a part of an asset) in a cover pool for which the ADI is the issuing ADI.
 (5) An offence against subsection (4) is an indictable offence.
 (6) If the circumstances relating to the asset holdings of an ADI are such that give rise to the ADI committing an offence against subsection