Banking Act 1959

Part IIAA - The Banking Executive Accountability Regime  

Division 7 - Miscellaneous  

SECTION 37KA   Indemnifying ADIs and accountable persons  

(1)  
A related body corporate of an ADI must not (whether by agreement or by making a payment and whether directly or through an interposed entity):


(a) indemnify the ADI against the consequences of breaching an obligation under this Part; or


(b) pay, or agree to pay, a premium for a contract insuring the ADI against the consequences of breaching an obligation under this Part.

(2)  
An ADI, or a related body corporate of an ADI, must not (whether by agreement or by making a payment and whether directly or through an interposed entity):


(a) indemnify a person who is or was an accountable person of the ADI against the consequences of breaching an obligation under this Part; or


(b) pay, or agree to pay, a premium for a contract insuring such a person against the consequences of breaching an obligation under this Part.

(3)  
This section does not apply to a liability for legal costs.




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