30Money payable under guarantee if licence of licensed corporation is revoked

30 Money payable under guarantee if licence of licensed corporation 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 corporation. 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 take from the guarantee money: (a) any amounts needed: (i) to discharge any liability mentioned in paragraph 27(2)(b) that Comcare decides to discharge; and (ii) to meet claims management costs, for any claims mentioned in paragraph 27(3)(a) (relevant claims) that Comcare decides to manage or arrange to be managed, that are not paid directly to Comcare by the former licensed corporation; and (iii) to enable Comcare to meet the cost of any arrangement mentioned in subsection 31(1) that Comcare 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. Dealing with guarantee money when all outgoings paid (6) If 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 former licensed corporation; or (b) if the former licensed corporation 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 corporation; or (ii) in any other case—to the bank or other body that paid the money to Comcare. Comcare may manage relevant claims (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 subsection (9); (c) the amount determined by Comcare as the costs incurred by Comcare in transferring the claim from the former licensed corporation to Comcare. Former licensed corporation must notify Comcare of relevant claims received (11) The former licensed corporation must: (a) on receiving a claim, notice or other communication, or being served with any proceedings in relation to a claim—give the claim, notice, communication or proceedings to Comcare; and (b) give Comcare all documents, information and assistance reasonably required for Comcare to manage the relevant claim or proceedings.