Document ID: chunk:federal_register_of_legislation:C2006C00145:clause:2_13a
Version: federal_register_of_legislation:C2006C00145
Segment Type: clause
Provision Reference: sch 2 cl 13A
Character Range: 69212–70790

13A  Consequences of inability or failure of ADI to meet obligations

Appointment of investigator or administrator or control by APRA

 (1) APRA may appoint a person to investigate the affairs of an ADI, take control of the ADI's business or appoint an administrator to take control of the ADI's business if:
 (a) the ADI informs APRA that the ADI considers that it is likely to become unable to meet its obligations or that it is about to suspend payment; or
 (b) APRA considers that the ADI is likely to become unable to meet its obligations or is about to suspend payment; or
 (c) the ADI becomes unable to meet its obligations or suspends payment.

Note: For information about another circumstance in which APRA may take control of the business of an ADI, see section 65.

 (2) Throughout this Subdivision and Subdivision B, the term ADI statutory manager is used. It refers to the entity in control of an ADI's business under this Subdivision. That entity will be either APRA or an administrator of an ADI's business appointed by APRA.

Australian assets of ADI to be available to meet deposit liabilities

 (3) If an ADI becomes unable to meet its obligations or suspends payment, the assets of the ADI in Australia are to be available to meet that ADI's deposit liabilities in Australia in priority to all other liabilities of the ADI.

 (4) An ADI must hold assets (excluding goodwill) in Australia of a value that is equal to or greater than the total amount of its deposit liabilities in Australia unless it is authorised by APRA to hold assets of a lesser value.