(1) When an ADI becomes a declared ADI, then, by force of this subsection, the right of an account-holder who has a protected account with the ADI to be paid an amount by the ADI in connection with the account:
(a) is reduced to the extent of the account-holder's entitlement under this Subdivision connected with the account; and
(b) to the extent of the reduction, becomes a right of APRA.
(2) APRA may exercise or assign a right it has under paragraph (1)(b).
Note: Under section 11 of the Australian Prudential Regulation Authority Act 1998 , APRA's property is generally held on behalf of the Commonwealth.