§ 78 — Action by Authority if payment entity unable to meet obligations, etc.

78.—(1) The Authority may exercise one or more of the powers specified in subsection (2) as appears to the Authority to be necessary, where —(a)

a payment entity informs the Authority that the payment entity is or is likely to become insolvent, is or is likely to become unable to meet the payment entity’s obligations, or has suspended or is about to suspend payments;

(b)

a payment entity is insolvent, becomes unable to meet the payment entity’s obligations, or suspends payments;

(c)

the Authority is of the opinion that the payment entity —(i)

is or is likely to become insolvent, is or is likely to become unable to meet the payment entity’s obligations, or has suspended or is about to suspend payments; or

(ii)

has contravened any of the provisions of this Act; or

(d)

the Authority considers it in the public interest to do so.

(2) For the purposes of subsection (1), the Authority may exercise any of the following powers:(a)

require the payment entity to immediately take any action, or to do or not to do any act, in relation to the business of the payment entity, that the Authority may consider necessary;

(b)

appoint one or more persons as statutory adviser, on such terms as the Authority may specify by written notice, to advise the payment entity on the proper management of such business of the payment entity as the Authority may determine;

(c)

assume control of and manage such business of the payment entity as the Authority may determine, or appoint one or more persons as statutory manager to do so on such terms as the Authority may specify by written notice.

(3) Where the Authority appoints 2 or more persons as statutory manager of a payment entity, the Authority must specify, in the terms of the appointment, which of the duties, functions and powers of the statutory manager —(a)

may be discharged or exercised by those persons jointly and severally;

(b)

must be discharged or exercised by those persons jointly; and

(c)

must be discharged or exercised by a specified person (being one of those persons).

(4) Where the Authority has exercised any power under subsection (2), the Authority may, at any time and without affecting the Authority’s powers under section 11(2) or (3), do one or more of the following:(a)

vary or revoke any requirement of, any appointment made by, or any action taken by the Authority under subsection (2) in the exercise of such power, on such terms as the Authority may specify by written notice;

(b)

exercise any of the powers under subsection (2);

(c)

add to, vary or revoke any term the Authority has specified under this section.

(5) A statutory manager or statutory adviser incurs no liability for anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of or in connection with —(a)

the exercise or purported exercise of any power under this Act;

(b)

the performance or purported performance of any function or duty under this Act; or

(c)

the compliance or purported compliance with this Act.

—(1) The Authority may exercise one or more of the powers specified in subsection (2) as appears to the Authority to be necessary, where —(a)

a payment entity informs the Authority that the payment entity is or is likely to become insolvent, is or is likely to become unable to meet the payment entity’s obligations, or has suspended or is about to suspend payments;

(b)

a payment entity is insolvent, becomes unable to meet the payment entity’s obligations, or suspends payments;

(c)

the Authority is of the opinion that the payment entity —(i)

is or is likely to become insolvent, is or is likely to become unable to meet the payment entity’s obligations, or has suspended or is about to suspend payments; or

(ii)

has contravened any of the provisions of this Act; or

(d)

the Authority considers it in the public interest to do so.

(2) For the purposes of subsection (1), the Authority may exercise any of the following powers:(a)

require the payment entity to immediately take any action, or to do or not to do any act, in relation to the business of the payment entity, that the Authority may consider necessary;

(b)

appoint one or more persons as statutory adviser, on such terms as the Authority may specify by written notice, to advise the payment entity on the proper management of such business of the payment entity as the Authority may determine;

(c)

assume control of and manage such business of the payment entity as the Authority may determine, or appoint one or more persons as statutory manager to do so on such terms as the Authority may specify by written notice.

(3) Where the Authority appoints 2 or more persons as statutory manager of a payment entity, the Authority must specify, in the terms of the appointment, which of the duties, functions and powers of the statutory manager —(a)

may be discharged or exercised by those persons jointly and severally;

(b)

must be discharged or exercised by those persons jointly; and

(c)

must be discharged or exercised by a specified person (being one of those persons).

(4) Where the Authority has exercised any power under subsection (2), the Authority may, at any time and without affecting the Authority’s powers under section 11(2) or (3), do one or more of the following:(a)

vary or revoke any requirement of, any appointment made by, or any action taken by the Authority under subsection (2) in the exercise of such power, on such terms as the Authority may specify by written notice;

(b)

exercise any of the powers under subsection (2);

(c)

add to, vary or revoke any term the Authority has specified under this section.

(5) A statutory manager or statutory adviser incurs no liability for anything done (including any statement made) or omitted to be done with reasonable care and in good faith in the course of or in connection with —(a)

the exercise or purported exercise of any power under this Act;

(b)

the performance or purported performance of any function or duty under this Act; or

(c)

the compliance or purported compliance with this Act.