Section 82 — Determination by Authority

(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.