Document ID: chunk:federal_register_of_legislation:C2025C00165:section:16ai
Version: federal_register_of_legislation:C2025C00165
Segment Type: section
Provision Reference: s 16AI
Character Range: 198934–199614

16AI  Substitution of APRA for account‑holder as ADI's creditor
 (1) When an ADI becomes a declared ADI, then, by force of this subsection, the right of an account‑holder who has a protected account with the ADI to be paid an amount by the ADI in connection with the account:
 (a) is reduced to the extent of the account‑holder's entitlement under this Subdivision connected with the account; and
 (b) to the extent of the reduction, becomes a right of APRA.
 (2) APRA may exercise or assign a right it has under paragraph (1)(b).
Note: Under section 11 of the Australian Prudential Regulation Authority Act 1998, APRA's property is generally held on behalf of the Commonwealth.