Deposit Protection Act · 2023 Revised Edition · Part 4
62. Subrogation
Official textFrom Attorney General's Chambers, unchanged
On any payment under this Act to, or for the benefit of, any protected depositor in respect of his protected deposit, the Corporation shall be subrogated to the extent of such payment to all the rights and remedies of —
depositor
“depositor” means a person — (a) whose account has been or is to be credited in respect of monies constituting a deposit or part of such deposit; or (b) to whom a member institution is liable in respect of an instrument issued for monies constituting a deposit or part of such deposit;
the protected depositor;
the person who received the payment on behalf of the protected depositor;
in the case where payment is made to a protected depositor who is a beneficiary of a trust, the trustee; or
in the case where payment is made to a protected depositor who is a client in a client account, the depositor who held the protected deposit in that client account, as the case may be, in respect of the protected deposit in priority over —
the rights and remedies of the protected depositor, the person who received the payment on behalf of the protected depositor, the trustee or the depositor of a client account, as the case may be, in relation to that protected deposit; and
the rights and remedies of any person who is subrogated, whether or not before the Corporation’s subrogation, to the rights and remedies of any of the persons referred to in paragraphs (a), (b), (c) and (d) in relation to that protected deposit,
Deposit Protection and may maintain an action in respect of those rights and remedies in the name of person referred to in paragraph (a), (b), (c) or (d), as the case may be, or in the name of the Corporation.
The persons referred to in subsection (1)(a), (b), (c) and (d), or any person who is subrogated, whether or not before the Corporation’s subrogation, to the rights and remedies of those persons, shall not be entitled to receive any amount from, or out of, the assets of the failed member institution until the Corporation has been reimbursed in full the amount of payment paid to those persons.
Corporation
“Corporation” means the Brunei Darussalam Deposit Protection Corporation established by section 3;
The Corporation shall be entitled —
in the case where the failed member institution is wound up, to be reimbursed out of the assets of the failed member institution for the expenses incurred in —
the payments to protected depositors; and
the lodging of a claim with the liquidator of the member institution for any payment that has been paid out to protected depositors; or
in any other case, to be reimbursed by the failed member institution or the provisional liquidator of the failed member institution, as the case may be, for the expenses incurred in —
the payments to protected depositors; and
where a claim has been lodged with the provisional liquidator of the failed member institution for any payment that has been paid out to protected depositors, the lodging of the claim.
Terms defined in s 2
Corporation
Defined · s 2“Corporation” means the Brunei Darussalam Deposit Protection Corporation established by section 3;
deposit
Defined · s 2“deposit” means a deposit as defined in section 2(3) of the Banking Order, 2006, a deposit as defined in section 2(3) of the Islamic Banking Order, 2008 and a deposit as defined in section 2 of the Finance Companies Act, as the case may be;
deposit protection
Defined · s 2“deposit protection” means the protection provided to the depositors of a member institution in case of its failure to pay its deposits;
depositor
Defined · s 2“depositor” means a person — (a) whose account has been or is to be credited in respect of monies constituting a deposit or part of such deposit; or (b) to whom a member institution is liable in respect of an instrument issued for monies constituting a deposit or part of such deposit;
member institution
Defined · s 2“member institution” means any financial institution deemed to be a member institution under section 27 whose membership has not been cancelled under section 31 or terminated under section 32;
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