§ 123 — Eligibility for compensation

123.—(1) A pre-resolution creditor or pre‑resolution shareholder of a Division 11 FI under resolution that is worse off as a result of the resolution, is eligible for compensation of the amount mentioned in subsection (2).(2) The amount of compensation that the pre-resolution creditor or pre‑resolution shareholder is eligible for is the difference between —(a)

what the pre-resolution creditor or pre‑resolution shareholder would have received had winding up proceedings been commenced against the Division 11 FI under resolution immediately before the resolution date; and

(b)

what the pre-resolution creditor or pre‑resolution shareholder has received, is receiving, or is likely to receive —(i)

as a result of one or more of the actions mentioned in section 122(2); and

(ii)

as compensation under the law of a foreign country or territory governing the foreign resolution (if applicable).

(3) Subject to section 129, the Authority must recommend to the Minister to make a direction to the trustee of the resolution fund established under Division 10 in relation to the resolution of the Division 11 FI, to make a withdrawal from the fund to pay to the pre‑resolution creditor or pre‑resolution shareholder, the amount set out in the valuation report as the amount mentioned in subsection (2).

(4) Payment of the compensation to the pre‑resolution creditor or pre‑resolution shareholder is to be made in the form and manner, and within the time, prescribed by regulations made under section 135.

—(1) A pre-resolution creditor or pre‑resolution shareholder of a Division 11 FI under resolution that is worse off as a result of the resolution, is eligible for compensation of the amount mentioned in subsection (2).

(2) The amount of compensation that the pre-resolution creditor or pre‑resolution shareholder is eligible for is the difference between —(a)

what the pre-resolution creditor or pre‑resolution shareholder would have received had winding up proceedings been commenced against the Division 11 FI under resolution immediately before the resolution date; and

(b)

what the pre-resolution creditor or pre‑resolution shareholder has received, is receiving, or is likely to receive —(i)

as a result of one or more of the actions mentioned in section 122(2); and

(ii)

as compensation under the law of a foreign country or territory governing the foreign resolution (if applicable).

(3) Subject to section 129, the Authority must recommend to the Minister to make a direction to the trustee of the resolution fund established under Division 10 in relation to the resolution of the Division 11 FI, to make a withdrawal from the fund to pay to the pre‑resolution creditor or pre‑resolution shareholder, the amount set out in the valuation report as the amount mentioned in subsection (2).

(4) Payment of the compensation to the pre‑resolution creditor or pre‑resolution shareholder is to be made in the form and manner, and within the time, prescribed by regulations made under section 135.