Australian Capital Territory Current Acts

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Payment to DI fund of amounts recovered by liquidator from reinsurer

    (1)     This section applies if—

        (a)     a licensed insurer is, under a contract of reinsurance, insured against liability in relation to compulsory insurance policies issued by the insurer and liability in relation to them is incurred by the insurer; and

        (b)     any part of the liability is met by an amount paid out of the DI fund under this Act; and

        (c)     an amount in relation to that part of the liability of the insurer is received by a liquidator of the insurer from the reinsurer.

    (2)     The liquidator must pay the amount to the DI fund, in priority to all payments in relation to debts mentioned in the Corporations Act

, section 556.

    (3)     However, the liquidator may deduct from the amount the reasonable expenses of or incidental to recovering the amount.

    (4)     This section has effect despite any agreement to the contrary.

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