Banking Act 1959

Part II - Provisions relating to the carrying on of banking business  

Division 2AA - Financial claims scheme for account-holders with insolvent ADIs  

Subdivision C - Payment of account-holders with declared ADI  

SECTION 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.