16AISubstitution of APRA for account‑holder as ADI’s creditor

16AI Substitution of APRA for account‑holder as ADI’s creditor

(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.