Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 16AD

             (1)  The Minister may declare that Subdivision C applies in relation to a specified ADI if APRA has applied under section 14F for the ADI to be wound up.

Note:          The Minister cannot make a declaration relating to a foreign ADI because APRA cannot apply for a foreign ADI to be wound up: see section 11E.

Declaration to specify amount for meeting entitlements

             (2)  The declaration must also specify the amount (if any) that is to be credited to the Financial Claims Scheme Special Account in connection with the application of Subdivision C in relation to the declared ADI. If APRA's application under section 14F was made on or after 12 October 2011, the amount must not be more than $20,000,000,000.

Declaration to specify amount for administration

             (3)  The declaration must also specify the amount (if any) that is to be credited to the APRA Special Account in connection with the administration of this Division in relation to the declared ADI. The amount must not be more than $100,000,000.

Amendment of specification of amounts

             (4)  The Minister may amend a declaration made under subsection (1), but only to change the specification of an amount under subsection (2) or (3), within the limit set in that subsection.

Declaration cannot be revoked

             (5)  The Minister cannot revoke a declaration made under subsection (1).

Declaration or amendment not disallowable or subject to expiry

             (6)  A declaration made under subsection (1), or an amendment of the declaration, is a legislative instrument, but neither section 42 (disallowance) nor Part 6 (sunsetting) of the Legislative Instruments Act 2003 applies to the declaration or amendment.

Effect of declaration or amendment

             (7)  The declaration or amendment:

                     (a)  takes effect from the time it is made, despite subsections 12(1) and (2) of the Legislative Instruments Act 2003 ; and

                     (b)  has effect according to its terms.

Declaration not to specify ADI by reference to class

             (8)  Subsection 13(3) of the Legislative Instruments Act 2003 does not apply to a declaration under subsection (1) specifying an ADI.

Note:          This ensures that a declaration must specify an ADI individually, and cannot specify it by reference to a class of ADIs.