Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 14F

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:

                     (a)  an ADI statutory manager is in control of the ADI's business; and

                     (b)  APRA considers that the ADI is insolvent and could not be restored to solvency within a reasonable period.

             (2)  The winding up of the ADI is to be conducted in accordance with the Corporations Act 2001 under which the ADI is incorporated or is taken to be incorporated.

Notifying Minister of application

             (3)  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.