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 E - Account-holder's claims against ADI remaining after entitlement  

SECTION 16AR   How liquidator must pay distributions to account-holder  

(1)  
This section applies if, in the winding up of the ADI, a distribution attributable to the protected account is payable to the account-holder and the protected account was of a kind prescribed by the regulations for the purposes of this subsection.

(2)  
The liquidator must pay the distribution (so far as it is attributable to the account) into an account of the same kind that is held by the account-holder with an ADI (except a declared ADI).

(3)  
If the account-holder does not hold an account of that kind, the liquidator must establish, on behalf of the account-holder, an account of that kind with an ADI (except a declared ADI) for the payment of the distribution in accordance with subsection (2).

(4)  
Subsection (3) empowers the liquidator to establish the account:


(a) whether or not the account-holder consents to the establishment of the account; and


(b) despite any other law of the Commonwealth relating to the establishment of such an account.


 

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