Part 6Depositor compensation scheme
Entitlement to compensation: Payment of entitlements
226Recovery of compensation paid in excess or in error under scheme
This section applies if—
- any compensation paid to, or on account of, an eligible depositor out of the fund exceeds what ought to have been paid under this Act; or
- any compensation is paid in error to, or on account of, any person.
The Bank may recover the amount paid in error or excess from the person who received the compensation.
The person must repay the money in the manner that is specified by the Bank.
An amount paid in error or excess to any person is money owing in respect of the fund (see section 197(4)).
On recovering an amount paid in error or excess under this section, the Bank must pay the amount into the fund.
After the amount is paid into the fund, the Bank may pay the amount out of the fund (in whole or in part) to meet any obligation payable by the Bank in connection with the Bank performing or exercising functions, powers, or duties under this Part.