231Sufficiency

231 Sufficiency

231 Sufficiency

(1) If the fidelity authority is of the opinion that the fidelity fund is likely to be insufficient to meet the fund’s ascertained and contingent liabilities, the authority may do any or all of the following—

(a) postpone all payments relating to all or any class of claims out of the fund;

(b) impose a levy;

(c) make partial payments of the amounts of one or more allowed claims out of the fund with payment of the balance being a charge on the fund;

(d) make partial payments of the amounts of 2 or more allowed claims out of the fund on a pro rata basis, with payment of the balance ceasing to be a liability of the fund.

(2) In deciding whether to do any or all of the things mentioned in subsection (1), the fidelity authority—

(a) must have regard to hardship where relevant information is known to the authority; and

(b) must endeavour to treat outstanding claims equally and equitably, but may make special adjustments in cases of hardship.

(3) If the fidelity authority declares that a decision is made under subsection (1)(d)—

(a) the balance specified in the declaration ceases to be a liability of the fidelity fund; and

(b) the authority may (but need not) at any time revoke the declaration in relation to either the whole or a specified part of the balance, and the balance or that part of the balance again becomes a liability of the fund.

(4) A decision of the fidelity authority made under this section is final and not subject to appeal or review.

Note

Section 246(8) provides for payment to a claimant of any additional amount (less costs) recovered by the exercise of rights of subrogation under section 246.