Banking Act 1959

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

Division 2 - Protection of depositors  

Subdivision C - APRA ' s powers to apply for ADI to be wound up  

SECTION 16AAA   APRA ' s powers to apply for ADI to be wound up  


Power to apply for ADI to be wound up

(1)    
APRA may apply to the Federal Court of Australia for an order that an ADI be wound up if APRA considers that the ADI is insolvent and could not be restored to solvency within a reasonable period.

Note:

This section does not apply in relation to a foreign ADI (see subsection 11E(1B) ).


(2)    
To avoid doubt, subsection (1) applies whether or not an ADI statutory manager is in control of the ADI ' s business.

(3)    
The application is to be made under section 459P of the Corporations Act 2001 .

(4)    
The winding up of the ADI is to be conducted in accordance with the Corporations Act 2001 .

(5)    
If APRA makes an application under subsection (1), APRA must inform the Minister of the application as soon as possible.

Note:

Once informed, the Minister may choose to apply Subdivision C of Division 2AA in relation to the ADI so some depositors can receive payments earlier than they would in the winding up of the ADI.



 

Disclaimer and notice of copyright applicable to materials provided by CCH Australia Limited

CCH Australia Limited ("CCH") believes that all information which it has provided in this site is accurate and reliable, but gives no warranty of accuracy or reliability of such information to the reader or any third party. The information provided by CCH is not legal or professional advice. To the extent permitted by law, no responsibility for damages or loss arising in any way out of or in connection with or incidental to any errors or omissions in any information provided is accepted by CCH or by persons involved in the preparation and provision of the information, whether arising from negligence or otherwise, from the use of or results obtained from information supplied by CCH.

The information provided by CCH includes history notes and other value-added features which are subject to CCH copyright. No CCH material may be copied, reproduced, republished, uploaded, posted, transmitted, or distributed in any way, except that you may download one copy for your personal use only, provided you keep intact all copyright and other proprietary notices. In particular, the reproduction of any part of the information for sale or incorporation in any product intended for sale is prohibited without CCH's prior consent.