Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 14C

Liability for loss due to fraud etc.

             (1)  If an ADI incurs any loss because of any fraud, dishonesty, negligence or wilful failure to comply with this Act by the ADI statutory manager, the ADI statutory manager is liable for the loss.

Other losses

             (2)  An ADI statutory manager is not liable for a loss that is not a loss incurred because of fraud, dishonesty, negligence or wilful failure to comply with this Act. If the ADI statutory manager is an administrator of the ADI's business, the administrator must provide details of the loss in a written report to APRA. However, failure to do so does not make the administrator liable for the loss.

Subsections (1) and (2) apply instead of general indemnity provisions

             (3)  The question whether an ADI statutory manager is liable for a loss is to be determined in accordance with subsections (1) and (2), rather than in accordance with section 70A of this Act or section 58 of the Australian Prudential Regulation Authority Act 1998 .

ADI statutory manager not liable under section 588G of the Corporations Act 2001

             (4)  An ADI statutory manager is not to be taken to be a director for the purposes of section 588G of the Corporations Act 2001 .

Signpost to secrecy obligations

             (5)  Part 6 of the Australian Prudential Regulation Authority Act 1998 prohibits certain disclosures of information received by ADI statutory managers under this Act.