280Grounds on which licensed deposit taker may be declared to be in resolution

1. The Bank may make a recommendation under section 274 in respect of a licensed deposit taker (A) only if the Bank—

2. is satisfied on reasonable grounds that 1 or more of the following matters apply:
   1. A is insolvent or is likely to become insolvent:
   2. A has contravened, may have contravened, or is likely to contravene a requirement under an applicable standard, or a condition of its licence, to maintain a minimum amount (or ratio) of capital:
   3. A has contravened a direction given under subpart 3:
   4. A has persistently or seriously contravened any other prudential obligation:
   5. an overseas supervisor has taken, or is taking, regulatory action against A or against a person that controls A (whether or not that action has been completed); and
3. is satisfied that there is no reasonable prospect of the matters that apply under paragraph (a) being adequately dealt with to the Bank’s satisfaction in a timely and orderly way other than through resolution.

4. Subsection (1)(a)(ii) and (iii) does not limit subsection (1)(a)(iv).

5. In this section, regulatory action, in relation to A or a person that controls A, means—

6. action to cancel or suspend the licence, registration, or other authorisation of A or the person to act as a bank or other deposit taker (or action equivalent to cancelling or suspending such a licence, registration, or authorisation); or
7. a direction to A or the person to the effect of 1 or more of the following:
   1. to take specified action to improve its solvency:
   2. to carry on its business, or any part of its business, in accordance with the direction:
   3. to cease to carry on its business, or any part of its business, in accordance with the direction.