169BPayment to DI fund of amounts recovered by liquidator

169B Payment to DI fund of amounts recovered by liquidator using fund amounts (a) the liquidator of a licensed insurer recovers an amount owed to the insurer; and (b) the amount is recovered because of the payment of an amount out of the DI fund of part of a claim, judgment, order or award arising out of or in relation to a compulsory insurance policy issued by the insurer. (2) The liquidator must pay the amount to the DI fund, in priority to all payments in relation to debts mentioned in the Corporations Act, section 556.

DI fund’s relationship with liquidators of licensed insurers Division 8.2.5 (3) However, the liquidator may deduct from the amount the reasonable expenses of or incidental to recovering the amount. (4) This section has effect despite any agreement to the contrary.