Div 2Protection of Depositors.

Division 2.—Protection of Depositors. Commonwealth Bank to protect depositors. 11. It shall be the duty of the Commonwealth Bank to exercise its powers and functions under this Division for the protection of the depositors of the several banks. Supply of Information. 12.—(1.) The Commonwealth Bank may, by notice in writing, require any bank to supply it, within the time specified in the notice, with such information relating to the financial stability of that bank as is specified in the notice. (2.) The information supplied in compliance with a requirement under the last preceding sub-section shall be verified by a statutory declaration made by a senior officer of the bank concerned. (3.) If a bank fails to comply with any requirement under sub\-section (1.) of this section, the Commonwealth Bank may appoint an officer of the Commonwealth Bank to investigate the affairs of that bank. Banks unable to meet obligations. 13.—(1.) A bank which considers that it is likely to become unable to meet its obligations, or is about to suspend payment, shall forthwith inform the Commonwealth Bank. (2.) Where a bank— (a) so informs the Commonwealth Bank; (b) becomes unable to meet its obligations or suspends payment; or (c) in the opinion of the Commonwealth Bank, is likely to become unable to meet its obligations or is about to suspend payment, the Commonwealth Bank may— (d) appoint an officer of the Commonwealth Bank to investigate the affairs of the bank concerned; and (e) assume control of and carry on the business of that bank. (3.) Where the Commonwealth Bank has, in pursuance of the last preceding section, or in pursuance of the last preceding sub-section, appointed an officer to investigate the affairs of a bank, that bank shall afford the officer access to its books, accounts and documents and shall give to the officer such information and facilities as he requires to conduct the investigation. (4.) Where the Commonwealth Bank has, in pursuance of sub\-section (2.) of this section, assumed control of the business of a bank, that bank shall submit its business to the control of the Commonwealth Bank and shall provide the Commonwealth Bank with such facilities as the Commonwealth Bank requires to carry on the business of that bank. (5.) Where the Commonwealth Bank has, in pursuance of sub\-section (2.) of this section, assumed control of the business of a bank, the Commonwealth Bank shall, subject to the next succeeding sub\-section, remain in control of and continue to carry on, the business of that bank until such time as— (a) the deposits with the bank have been repaid or the Commonwealth Bank is satisfied that suitable provision has been made for their repayment; and (b) in the opinion of the Commonwealth Bank, it is no longer necessary for the Commonwealth Bank to remain in control of the business of the bank. (6.) Upon the application of a bank of whose business the Commonwealth Bank has assumed control in pursuance of sub-section (2.) of this section, a Full Court of the High Court constituted by not less than three Justices may, if it is satisfied that it is no longer necessary, for the protection of the depositors of that bank, that the Commonwealth Bank should remain in control of the business of that bank, order that the Commonwealth Bank shall cease to control the business of that bank, as from a date specified in the order. (7.) Where the Commonwealth Bank, in pursuance of this section, assumes control of the business of a bank, or ceases to control the business of a bank, the Commonwealth Bank shall notify that fact in the Gazette. Indemnity. 14. The Commonwealth Bank, the Governor and Deputy Governor of the Commonwealth Bank, and any officer of the Commonwealth Bank, shall not be subject to any action, claim, or demand by, or any liability to, any person in respect of anything done or omitted to be done in good faith and without negligence in the exercise, or in connexion with the exercise, of the powers conferred on the Commonwealth Bank under this Division. Assets to be held by banks. 15.—(1.) Except with the authority of the Commonwealth Bank, a bank shall hold assets (other than goodwill) in Australia of a value not less than the total amount of its deposit liabilities in Australia. (2.) In the event of a bank becoming unable to meet its obligations or suspending payment, the assets of the bank in Australia shall be available to meet that bank’s deposit liabilities in Australia in priority to all other liabilities of the bank.