109Arrangements that may be treated as financial security

109 Arrangements that may be treated as financial security

(1) For the purposes of paragraph 117(4)(a) of the Act, the following arrangements may be treated as financial security for the purposes of section 117 of the Act: (a) an amount received by the Commonwealth as mentioned in paragraph 119(3)(a) of the Act and retained in accordance with paragraph 119(4)(d) of the Act; (b) a cash deposit held by a financial institution; (c) a credit facility with a financial institution; (d) a guarantee from a financial institution; (e) an insurance policy with a general insurer (within the meaning of the Insurance Act 1973).

Note 1: Subsection (1) does not limit the kinds of arrangements that may be treated as financial security for the purposes of section 117 of the Act.

Note 2: The Minister may determine that the financial security that is required to be provided in relation to a particular licence must be provided in a particular form, which may be (but is not required to be) a form mentioned in subsection (1) (see section 102).

(2) This section has effect subject to section 110. (3) In this section:

financial institution means a corporation that is an ADI (authorised deposit‑taking institution) for the purposes of the Banking Act 1959.