Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 16AAA

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

Note:   This section does not apply in relation to a foreign ADI (see subsection   11E(1B)).

  (2)   To avoid doubt, subsection   (1) applies whether or not an ADI statutory manager is in control of the ADI's business.

  (3)   The application is to be made under section   459P of the Corporations Act 2001 .

  (4)   The winding up of the ADI is to be conducted in accordance with the Corporations Act 2001 .

  (5)   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.