Insurance Act 1973

Lloyd’s must, within 28 days after the commencement of this section, deposit with APRA securities of the Commonwealth the value of which as at that commencement is not less than $2,000,000.

If, at the end of a calendar year, the value of the securities deposited in accordance with this section falls short of $2,000,000, Lloyd’s must, within 28 days after the end of that year, deposit with APRA securities of the Commonwealth the value of which as at the end of that year was not less than the amount of the shortfall.

An obligation imposed on Lloyd’s by subsection (1) or (2) may be discharged by a company nominated in a written notice given by Lloyd’s to APRA.

The deposit of securities with APRA in accordance with this section is effective to transfer the legal and beneficial interest in the securities to the Commonwealth. APRA has custody of the securities for and on behalf of the Commonwealth.

See subsections 11(4) and (5) of the Australian Prudential Regulation Authority Act 1998.

If interest is derived on securities deposited with APRA in accordance with this section, APRA must authorise the payment of an amount equal to that interest by the Commonwealth to:

Lloyd’s; or

if a company nominated by Lloyd’s deposited those securities—that company.

If, at the end of a calendar year, the value of the securities deposited in accordance with this section exceeds $2,000,000, APRA must, after receiving a written request from Lloyd’s, return to:

Lloyd’s; or

if a company nominated by Lloyd’s deposited those securities—that company;

a direction is in force under section 74 or 78; or

a determination is in force under section 93; or

a designated security trust fund is under judicial trusteeship.

For the purposes of this section, if securities are listed on the official list of a securities exchange in Australia, the value of those securities at a particular time is a reference to the value of those securities on that day worked out by reference to that securities exchange and:

by reference to:

the sale of securities of the same class last recorded before that time by the securities exchange; or

the selling offer for securities of the same class last recorded before that time by the securities exchange;

by reference to the buying bid for securities of the same class last recorded before that time by the securities exchange;