Document ID: chunk:federal_register_of_legislation:C2012C00862:clause:1_13e
Version: federal_register_of_legislation:C2012C00862
Segment Type: clause
Provision Reference: sch 1 cl 13E
Character Range: 19549–21026

13E  Recapitalisation direction by APRA
 (1) APRA may give an ADI a direction (a recapitalisation direction) that requires the ADI to increase the ADI's level of capital to the level specified in the direction if:
 (a) the ADI informs APRA that:
 (i) the ADI considers that the ADI is likely to become unable to meet the ADI's obligations; or
 (ii) the ADI is about to suspend payment; or
 (b) APRA considers that, in the absence of external support:
 (i) the ADI may become unable to meet the ADI's 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 the ADI's 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:
 (i) becomes unable to meet the ADI's obligations; or
 (ii) suspends payment.
 (2) In deciding whether to give a recapitalisation direction, APRA must consult with the Australian Competition and Consumer Commission (the ACCC), unless the ACCC notifies APRA, in writing, that the ACCC does not wish to be consulted about:
 (a) the direction; or
 (b) a class of directions that includes the direction.
 (3) The regulations may specify that a particular form of support is not external support for the purposes of paragraph (1)(b).
 (4) A recapitalisation direction is not a legislative instrument.