15AMoney payable under guarantee—eligible corporations

15A Money payable under guarantee—eligible corporations

(1) This regulation applies if: (a) the Commission makes a demand for payment under a guarantee that is in force relating to an eligible corporation; and (b) the licence of the eligible corporation is revoked: (i) at the initiative of the Commission under paragraph 106(1)(b) of the Act; or (ii) at the request of the eligible corporation under section 107 of the Act. (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 take from the guarantee money: (a) any amounts needed: (i) to discharge any liability mentioned in paragraph 15(2)(b) that it decides to discharge; and (ii) to meet claims management costs, for any claims mentioned in paragraph 15(3)(a) (relevant claims) that it decides to manage or arrange to be managed, that are not paid directly to Comcare by the eligible corporation; and (iii) to enable Comcare to meet the cost of any arrangement mentioned in subregulation 15B(1) that it decides to make; and (b) if Comcare has received an actuarial report assessing the total value of any amounts needed for a purpose mentioned in paragraph (a) that are likely to become payable in the future—an amount equal to the assessment. (6) If Comcare determines that: (a) there are unlikely to be any further outgoings of guarantee money under subregulation (5); and (b) there is any guarantee money remaining; Comcare must deal with the remaining money in the way provided for in the guarantee. (7) 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 eligible corporation; or (b) if the eligible corporation no longer exists: (i) in accordance with any legislation that makes provision about the distribution of the assets of the former eligible corporation; or (ii) in any other case—to the bank or other body that paid the money to Comcare. (8) Comcare may decide: (a) to manage relevant claims; or (b) to arrange for some, or all, relevant claims to be managed by a person: (i) whom it considers suitable to manage the claims; and (ii) who is willing to enter into an arrangement with Comcare for the management of the claims. (9) If Comcare manages a relevant claim under paragraph (8)(a), Comcare must determine an amount as the costs incurred by Comcare in managing the claim. (10) Each of the following is a claims management cost: (a) the cost of an arrangement mentioned in subparagraph (8)(b)(ii); (b) the amount mentioned in subregulation (9). (11) The eligible corporation must: (a) on receiving a relevant claim or a notice or communication about a relevant claim—give the claim, notice or communication to Comcare; and (b) give Comcare all documents, information and assistance reasonably required for Comcare to manage the relevant claim.