14AMoney payable under guarantee—licence of Commonwealth authority revoked

14A Money payable under guarantee—licence of Commonwealth authority revoked

(1) This regulation applies if the Commission makes a demand for payment under a guarantee that is in force relating to a Commonwealth authority whose licence is revoked. (2) The money payable in response to the demand (guarantee money) must be paid to Comcare. (3) Comcare must pay all guarantee money it receives into a separate bank account until the money can be dealt with in accordance with this regulation.

Note: Money that is not immediately required for the purposes of Comcare may be invested: see section 59 of the Public Governance, Performance and Accountability Act 2013 (which deals with investment by corporate Commonwealth entities).

(4) To avoid doubt, Comcare holds guarantee money on its own account and not on behalf of the Commission or the Commonwealth. (5) Comcare may use guarantee money to do any of the following: (a) discharge a liability mentioned in paragraph 14(2)(b); (b) meet a cost mentioned in paragraph 14(3)(d); (c) reimburse itself if it has discharged a liability of that kind or met a cost of that kind without using guarantee money; (d) reimburse itself for the cost of any arrangements made by it under subregulation 14B(1) that is not paid directly to Comcare by the Commonwealth authority. (6) If Comcare has received an actuarial report assessing the total value of any amounts of a kind mentioned in paragraph (5)(a), (b) or (d) that are likely to become payable in the future, Comcare may take from the guarantee money an amount equal to the assessment. (7) If Comcare determines that: (a) there are unlikely to be any further outgoings of guarantee money under subregulations (5) and (6); and (b) there is any guarantee money remaining; Comcare must deal with the remaining money in the way provided for in the guarantee. (8) However, if the guarantee does not make any provision about how the remaining money is to be dealt with, Comcare must pay the remaining money: (a) to the Commonwealth authority; or (b) if the Commonwealth authority no longer exists: (i) in accordance with any legislation that makes provision about the distribution of the assets of the former Commonwealth authority; or (ii) in any other case—to the bank or other body that paid the money to Comcare.