Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 11AA

             (1)  A body corporate may apply in writing to APRA for an authority under this section. The authority operates as an authority in relation to the body corporate and any ADIs that are subsidiaries of the body corporate from time to time.

Note 1:       The body corporate may want the authority:

(a)           because APRA refuses or may refuse to grant a subsidiary of the body corporate a section 9 authority unless the body corporate holds a NOHC authority (see subsection 9(3A)); or

(b)           for a purpose connected with the Financial Sector (Shareholdings) Act 1998 .

Note 2:       The body corporate may also need to consider the implications of the Foreign Acquisitions and Takeovers Act 1975 and the Financial Sector (Shareholdings) Act 1998 .

             (2)  APRA may grant the authority if it considers it is appropriate to do so.

Note:          For APRA's power to revoke the authority, see section 11AB.

             (3)  APRA may, at any time, by notice in writing given to the body corporate:

                     (a)  impose conditions, or additional conditions, on the authority; and

                     (b)  vary or revoke conditions imposed on the authority.

The conditions must relate to prudential matters.

             (4)  A condition may be expressed to have effect despite anything in the prudential standards or the regulations.

             (5)  The body corporate is guilty of an offence if:

                     (a)  it does, or fails to do, an act; and

                     (b)  doing, or failing to do, the act results in a contravention of a condition of the authority; and

                     (c)  there is no determination in force under section 11 that this subsection does not apply to the body corporate.

Maximum penalty:    200 penalty units.

Note 1:       Chapter 2 of the Criminal Code sets out the general principles of criminal responsibility.

Note 2:       If a body corporate is convicted of an offence against this subsection, subsection 4B(3) of the Crimes Act 1914 allows a court to impose a fine of up to 5 times the penalty stated above.

          (5A)  An offence against subsection (5) is an indictable offence.

          (5B)  If the body corporate does or fails to do an act in circumstances that give rise to the body corporate committing an offence against subsection (5), the body corporate is guilty of an offence against that subsection in respect of:

                     (a)  the first day on which the offence is committed; and

                     (b)  each subsequent day (if any) on which the circumstances that gave rise to the body corporate committing the offence continue (including the day of conviction for any such offence or any later day).

Note:          This subsection is not intended to imply that section 4K of the Crimes Act 1914 does not apply to offences against this Act or the regulations.

             (6)  If APRA:

                     (a)  grants an authority under subsection (2); or

                     (b)  imposes, varies or revokes conditions under subsection (3);

APRA must cause notice of that action to be published in the Gazette . APRA may also cause notice of that action to be published in any other way that it considers appropriate.

             (7)  A failure to comply with subsection (6) does not affect the validity of the action concerned.

             (8)  Part VI applies to the following decisions under this section:

                     (a)  a decision to refuse an application under this section;

                     (b)  a decision to impose conditions, or additional conditions, on an authority;

                     (c)  a decision to vary conditions imposed on an authority.