24Money payable under guarantee if licence of licensed authority is revoked

24 Money payable under guarantee if licence of licensed authority is revoked

Application (1) This section applies if the Commission makes a demand for payment under a guarantee that is in force in relation to a former licensed authority. 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 paragraph 21(2)(b); (b) meet a cost mentioned in paragraph 21(3)(d); (c) reimburse itself if it has discharged a liability, or met a cost, of that kind without using guarantee money; (d) reimburse itself for the cost of any arrangements made by it under subsection 25(1) that is not paid directly to Comcare by the former licensed 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. Dealing with guarantee money when all outgoings paid (7) If Comcare determines that: (a) there are unlikely to be any further outgoings of guarantee money under subsections (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 former licensed authority; or (b) if the former licensed authority no longer exists: (i) in accordance with any law of the Commonwealth that makes provision about the distribution of the assets of the former licensed authority; or (ii) in any other case—to the bank or other body that paid the money to Comcare.