227Bank’s right of subrogation

1. If the Bank pays compensation under this Part to, or on account of, an eligible depositor (A) in respect of a protected deposit issued by a licensed deposit taker (B), the Bank is subrogated, to the extent of the payment, to all the rights and remedies that, but for the subrogation, each relevant person would have had in relation to the protected deposit.

2. Each relevant person must (at the Bank’s expense) do anything reasonably required by the Bank to enable it to exercise or enforce any subrogated rights or remedies.

3. This section applies—

4. whether the compensation is equivalent to the full amount owing under a protected deposit or only part of that amount; and
5. to give the Bank the same rights and remedies that each relevant person would have had in relation to B, any third party, and any security for an amount owing under a protected deposit; and
6. to give the Bank the same priority that the holder of the protected deposit would have had in the event of B’s insolvency.

7. In this subpart, relevant person means each of the following:

8. A:
9. a holder of the protected deposit (where A is not the holder or is not the only holder).