INSURANCE ACT 1973 - SECT 89 Grounds for order for judicial trusteeship

INSURANCE ACT 1973 - SECT 89

  (1)   On an application under section   88, the Federal Court may make an order that a designated security trust fund be placed under judicial trusteeship if the Federal Court is satisfied:

  (a)   that the whole or a part of the affairs of the fund have been investigated under Division   4; and

  (b)   that, having regard to the results of the investigation, it is in the interests of the holders of contracts of insurance covered by the fund that the order be made.

  (2)   On an application under section   88, the Federal Court may make an order that a designated security trust fund be placed under judicial trusteeship if:

  (a)   the Federal Court is satisfied:

  (i)   that section   93 has ceased to have effect; or

  (ii)   that Lloyd's has contravened section   68; or

  (iii)   that the trustee of the fund has contravened section   70; or

  (iv)   that there are reasonable grounds for believing that the management or financial position of the fund may be unsatisfactory; or

  (v)   that the time needed to make or complete an investigation of the whole or part of the affairs of the fund under Division   4 would be likely to be such as to prejudice the interests of holders of contracts of insurance covered by the fund; and

  (b)   the Federal Court is satisfied that it is in the interests of the holders of contracts of insurance covered by the fund that the order be made.