16ABPurpose of this Division

16AB Purpose of this Division

The main purpose of this Division is to provide for a scheme that: (a) allows the Minister to make a declaration about an ADI if: (i) APRA has applied under section 16AAA for the ADI to be wound up; or (ii) a Banking Act statutory manager is in control of the ADI’s business; and (b) entitles account‑holders who have certain protected accounts with a declared ADI to be paid certain amounts to maintain the account‑holders’ liquidity before they would receive payment in a winding up of the ADI; and (c) substitutes APRA for those account‑holders as a creditor of the declared ADI to the extent of the entitlements; and (d) allows APRA to facilitate a transfer of business from the declared ADI to a receiving body under the Financial Sector (Transfer and Restructure) Act 1999 by entitling the receiving body to amounts in respect of the protected accounts.