Withdrawal from resolution fund
101.—(1)  The trustee of a resolution fund must, at the Minister’s direction, make one or more withdrawals from the fund and apply the moneys withdrawn for one or more of the following purposes:
(a)to pay the operating costs of a provisional entity;
(b)to discharge a guarantee for, or an obligation under an agreement to share, a liability of the financial institution under resolution, a provisional entity or a person to whom any asset or business of the financial institution has been transferred;
(c)to pay the costs of transferring the whole or any part of the business of the financial institution under resolution pursuant to the resolution measure;
(d)to make or provide a loan, advance, overdraft or other credit facility to the financial institution under resolution or a provisional entity;
(e)to pay any other costs reasonably incurred in the resolution measure, such as interest costs, legal cost, cost of any advisory services, and the cost of an independent valuation of the financial institution under resolution;
(f)to make any payment of compensation and associated costs under Division 5C;
(g)to pay the remuneration and expenses of a valuer mentioned in section 115(9);
(h)to provide capital to the financial institution under resolution or the provisional entity;
(i)such other purposes in support of the resolution measure as may be prescribed by regulations made under section 126.
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(2)  The Minister may only give a direction to the trustee under subsection (1) on a recommendation of the Authority.
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(3)  In determining whether to make a recommendation to the Minister to direct a trustee of a resolution fund to make a withdrawal under subsection (1), the Authority must have regard to all of the following:
(a)whether losses are imposed on shareholders and unsecured creditors of the financial institution under resolution under Division 4 or 4A;
(b)whether funding from the private sector can be obtained for the resolution measure;
(c)such other factors as may be prescribed by regulations made under section 126.
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(4)  The Authority may only make a recommendation to the Minister under subsection (1)(h) to make a withdrawal to provide capital to the financial institution under resolution —
(a)if the Authority is of the view that the provision of the capital is necessary for the orderly resolution of the financial institution under resolution; and
(b)after the Authority has taken into account whether appropriate losses have been imposed on shareholders and unsecured creditors of the financial institution under resolution under Division 4 or 4A.
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(5)  Where a direction has been made to the trustee under subsection (1), the Authority must, as soon as practicable, publish a notice of that fact in the Gazette and in such newspaper or newspapers as the Minister determines.
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