§ 82 — Determination by Authority

82.—(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 6 FI, or to which the Division 6 FI is a party or is subject:(a)

that the eligible instrument or instruments should be cancelled;

(b)

that the eligible instrument or instruments should be modified, converted or changed in form;

(c)

that the eligible instrument or instruments should have effect as if a right of modification, conversion or change of its or their form had been exercised.

(2) The Authority may make the determination in subsection (1) if —(a)

any ground exists for the Authority to exercise any power under the relevant provisions applicable to the Division 6 FI, whether or not the Authority has exercised the power; and

(b)

the Authority is of the opinion that —(i)

the eligible instrument or instruments ought to be bailed in to facilitate the orderly resolution of the Division 6 FI; or

(ii)

the Division 6 FI’s available assets do not or are unlikely to support payment of its liabilities, as they become due and payable.

(3) The Authority may, before making a determination, appoint one or more persons —(a)

to perform an independent assessment of the extent to which the acts mentioned in subsection (1)(a), (b) and (c) should be carried out for all or any eligible instruments; and

(b)

to provide to the Authority a report on the assessment.

(4) The remuneration and expenses of any person appointed under subsection (3) are to be paid by the Division 6 FI.

(5) The Authority must serve a copy of any report provided under subsection (3) on the Division 6 FI.

(6) Upon making a determination, the Authority must submit the determination to the Minister for approval.

—(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 6 FI, or to which the Division 6 FI is a party or is subject:(a)

that the eligible instrument or instruments should be cancelled;

(b)

that the eligible instrument or instruments should be modified, converted or changed in form;

(c)

that the eligible instrument or instruments should have effect as if a right of modification, conversion or change of its or their form had been exercised.

(2) The Authority may make the determination in subsection (1) if —(a)

any ground exists for the Authority to exercise any power under the relevant provisions applicable to the Division 6 FI, whether or not the Authority has exercised the power; and

(b)

the Authority is of the opinion that —(i)

the eligible instrument or instruments ought to be bailed in to facilitate the orderly resolution of the Division 6 FI; or

(ii)

the Division 6 FI’s available assets do not or are unlikely to support payment of its liabilities, as they become due and payable.

(3) The Authority may, before making a determination, appoint one or more persons —(a)

to perform an independent assessment of the extent to which the acts mentioned in subsection (1)(a), (b) and (c) should be carried out for all or any eligible instruments; and

(b)

to provide to the Authority a report on the assessment.

(4) The remuneration and expenses of any person appointed under subsection (3) are to be paid by the Division 6 FI.

(5) The Authority must serve a copy of any report provided under subsection (3) on the Division 6 FI.

(6) Upon making a determination, the Authority must submit the determination to the Minister for approval.