Banking Act 1959

Part IIB - Provisions relating to the non-ADI lenders  

Division 3 - APRA ' s power to issue directions  

SECTION 38K   APRA may give directions in certain circumstances  

(1)  
APRA may give a body corporate that is a non-ADI lender a direction to take specified action to comply with the whole or a part of a non-ADI lender rule if APRA has reason to believe that:


(a) the body corporate has contravened the non-ADI lender rule; or


(b) the body corporate is likely to contravene the non-ADI lender rule.

(2)  
The direction must:


(a) be given by notice in writing to the body corporate; and


(b) specify the ground referred to in subsection (1) as a result of which the direction is given.

(3)  
In deciding whether to give a direction under subsection (1), APRA must consider whether the body corporate has taken reasonable steps in the past to comply with the non-ADI lender rule.

(4)  
The direction may deal with the time by which, or period during which, it is to be complied with.

(5)  
The body corporate has power to comply with the direction despite anything in its constitution or any contract or arrangement to which it is a party.

(6)  
APRA may, by notice in writing to the body corporate, vary the direction if, at the time of the variation, it considers that the variation is necessary and appropriate.

(7)  
The direction has effect until APRA revokes it by notice in writing to the body corporate. APRA may revoke the direction if, at the time of revocation, it considers that the direction is no longer necessary or appropriate.

(8)  
Part VI applies to a decision to give a direction under subsection (1).


 

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.