Financial System Legislation Amendment (Financial Claims Scheme and Other Measures) Act 2008 (105 of 2008)
Schedule 1 Financial Claims Scheme
Part 1 Amendment of the Banking Act 1959
13 Subsection 13A(3)
Repeal the subsection, substitute:
Priorities for application of assets of ADI in Australia
(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 the ADIs liabilities in the following order:
(a) first, the ADIs liabilities (if any) to APRA because of the rights APRA has against the ADI because of section 16AI;
(b) second, the ADIs debts (if any) to APRA under section 16AO;
(c) third, the ADIs deposit liabilities in Australia (other than any such liabilities covered under paragraph (a));
(d) fourth, the ADIs other liabilities (in the order of their priority apart from this subsection).
Note: Subsection (3) applies whatever other consequences flow from the ADI becoming unable to meet its liabilities or suspending payment (such as investigation of the ADIs affairs, or control of its business, under this Division, or winding up of the ADI).
Note: The following heading to subsection 13A(4) is inserted ADIs assets must at least equal its deposit liabilities.