Document ID: chunk:federal_register_of_legislation:C2008A00105:clause:1_16ai
Version: federal_register_of_legislation:C2008A00105
Segment Type: clause
Provision Reference: sch 1 cl 16AI
Character Range: 19233–19947

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.

Subdivision D—Administration