Part 6Depositor compensation scheme
Use of fund to support resolution
230Bank may use fund to support resolution
The Bank may authorise an amount to be paid out of the fund for the purposes of supporting a resolution measure undertaken or to be undertaken for a licensed deposit taker (A) and meeting all other costs of the Bank in performing or exercising its functions, powers, or duties in connection with the measure if—
- the Bank is satisfied that eligible depositors are likely to receive, as a result of the resolution measure, no less favourable treatment than would have been the case had the eligible depositors been paid compensation under subpart 3; and
- the total amount paid out of the fund under this subpart in connection with the resolution of the licensed deposit taker does not exceed the maximum amount calculated under section 231.
Subsection (1)(a) does not apply in relation to paying compensation under subpart 9 of Part 7 (no creditor or shareholder worse off).
In this Part, resolution measure means either of the following:
- any action taken by the Bank to further 1 or more of the purposes set out in section 259 in connection with a licensed deposit taker in resolution, whether the Bank performs or exercises its functions, powers, or duties under this Act or any other legislation:
- paying compensation under subpart 9 of Part 7 (no creditor or shareholder worse off).