Division 1 General provisions
Division 2 Recovery and resolution planning
Division 1 General provisions
Division 2 Compulsory transfer of business of pertinent financial institution
Division 2A Reverse transfer of business and onward transfer of business
Division 3 Compulsory transfer of shares of pertinent financial institution
Division 4 Compulsory restructuring of share capital of pertinent financial institution
Division 4A Bail-in powers
Division 4B Termination rights
Division 5 Assistance to foreign resolution authorities and domestic authorities
Division 5A Recognition of foreign resolutions
Division 5B Resolution funding
Division 5C Compensation
Division 6 Miscellaneous
Division 1 General provisions
Division 2 Assistance to AML/CFT authorities
Division 3 Assistance to domestic authorities
Division 4 Additional provisions for Divisions 2 and 3
Division 5 Inspection by AML/CFT authority
| Division 4A — Bail-in powers |
| Interpretation of this Division |
| Exercise of powers under this Division |
72.—(1) In exercising any power under this Division, the Authority must have regard to the desirability of giving each pre-resolution creditor or pre-resolution shareholder of a Division 4A FI the priority and treatment the pre-resolution creditor or pre-resolution shareholder would have enjoyed had the Division 4A FI been wound up.
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| Determination by Authority |
73.—(1) Subject to subsection (2), the Authority may make one or more of the following determinations concerning one or more eligible instruments issued by a Division 4A FI, or to which it is a party or is subject:
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| Approval by Minister of determination |
74.—(1) Before approving a determination of the Authority, the Minister must, unless the Minister decides that it is not practicable or desirable to do so —
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| Bail-in certificate |
75.—(1) If the Minister approves a determination, the Minister must, as soon as practicable, issue a bail-in certificate.
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| Effects of bail-in certificate |
76.—(1) A provision in a bail-in certificate has effect despite any restriction arising by reason of contract, any written law or rule of law in force before the appointed date of the bail-in certificate, or the constitution of the Division 4A FI.
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| Moratorium |
77.—(1) Despite section 53(2) but subject to section 125, during the period beginning on the date of publication of the notice in section 74(1)(a) in the Gazette or, where the notice is not published in the Gazette, the date of publication of the bail-in certificate in the Gazette under section 75(7), and ending on the appointed date of the certificate —
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| Significant shareholder by reason of bail-in certificate |
78.—(1) Where any person becomes a significant shareholder of a Division 4A FI or resulting FI as a result of a provision of a bail-in certificate, that person —
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| Directions for disposal |
79.—(1) If the Minister is satisfied that any person has failed to comply with a condition imposed on the person in section 78(2), or if the Minister has served a notice on the person in section 78(5), the Minister may, by notice in writing —
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| Offence |
80. A person that fails to comply with a condition imposed on the person in section 78(2), or a notice served on the person in section 78(5) or 79(1), shall be guilty of an offence and shall be liable on conviction —
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| Restriction on eligible instruments |
81.—(1) To ensure the effective operation of the provisions of this Division on an eligible instrument, the Authority may make regulations under section 126 to impose a requirement on a Division 4A FI to ensure that the contract governing the eligible instrument contains a provision to the effect that the parties to the contract agree for the eligible instrument to be the subject of a bail-in certificate.
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