Document ID: chunk:federal_register_of_legislation:C2025C00165:section:13a:p1
Version: federal_register_of_legislation:C2025C00165
Segment Type: section
Provision Reference: s 13A (pt 1/5)
Character Range: 111702–114275

13A  Consequences of inability or failure of ADI etc. to meet certain requirements

Appointment of investigator or administrator, or investigation or control by APRA
 (1) APRA may investigate the affairs of an ADI, 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, in the absence of external support:
 (i) the ADI may become unable to meet its obligations; or
 (ii) the ADI may suspend payment; or
 (iii) it is likely that the ADI will be unable to carry on banking business in Australia consistently with the interests of its depositors; or
 (iv) it is likely that the ADI will be unable to carry on banking business in Australia consistently with the stability of the financial system in Australia; or
 (c) the ADI becomes unable to meet its obligations or suspends payment; or
 (d) an external administrator has been appointed to a holding company of the ADI (or a similar appointment has been made in a foreign country in respect of such a holding company), and APRA considers that the appointment poses a significant threat to:
 (i) the operation or soundness of the ADI; or
 (ii) the interests of depositors of the ADI; or
 (iii) the stability of the financial system in Australia; or
 (e) if the ADI is a foreign ADI:
 (i) an application for the appointment of an external administrator of the foreign ADI, or for a similar procedure in respect of the foreign ADI, has been made in a foreign country; or
 (ii) an external administrator has been appointed to the foreign ADI, or a similar appointment has been made in respect of the foreign ADI, in a foreign country.
Note: For information about another circumstance in which APRA may take control of the business of an ADI, see section 65.
 (1A) The regulations may specify that a particular form of support for an ADI is not to be considered external support for the purposes of paragraph (1)(b).
 (1B) APRA may take any of the actions mentioned in subsection (1C) in relation to a body corporate (the target body corporate) if:
 (a) the target body corporate is any of the following:
 (i) an authorised NOHC of an ADI (the relevant ADI);
 (ii) a subsidiary of an authorised NOHC of an ADI (also the relevant ADI);
 (iii) a subsidiary of an ADI (also the relevant ADI); and
 (b) the condition in subsection (1D), (1E) or (1F) is