20Money payable under guarantee if licence of licensed authority suspended

20 Money payable under guarantee if licence of licensed authority suspended

Application (1) This section applies if the Commission makes a demand for payment under a guarantee that is in force in relation to a licensed authority whose licence is suspended. Dealing with guarantee money (2) The money (guarantee money) payable in response to the demand 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 section.

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 subsection 19(2); (b) meet a cost mentioned in paragraph 19(3)(b); (c) reimburse itself if it has discharged a liability, or met a cost, of that kind without using guarantee money. Dealing with guarantee money when all outgoings paid (6) If, after the end of the period of the licence suspension, Comcare determines that: (a) there are unlikely to be any further outgoings of guarantee money under subsection (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 licensed authority; or (b) if the licensed authority no longer exists: (i) in accordance with any law of the Commonwealth that makes provision about the distribution of the authority’s assets; or (ii) in any other case—to the bank or other body that paid the money to Comcare.