Page:Deposit Protection Scheme Ordinance (Cap. 581).pdf/18

PART 5
Compensation

Division 1—Preliminary

22. Occurrence of specified event

(1) In this Part—

(a) subject to section 24, a specified event has occurred in relation to a Scheme member if—

(i) a winding-up order has been made by the Court of First Instance in respect of the Scheme member; or

(ii) the Monetary Authority has served on the Board a notice of his decision in respect of the Scheme member under subsection (2),

whichever is the earlier;

(b) a reference to a date of the specified event, in relation to a Scheme member, means—

(i) if a specified event has occurred in relation to the Scheme member by virtue of paragraph (a)(i), the date on which the winding-up order in respect of the Scheme member is made;

(ii) if a specified event has occurred in relation to the Scheme member by virtue of paragraph (a)(ii), the date on which the notice is served on the Board under subsection (2).

(2) If—

(a) in respect of a Scheme member—

(i) a Manager within the meaning of section 2(1) of the Banking Ordinance (Cap. 155) has been appointed under section 52 of that Ordinance; or

(ii) a provisional liquidator has been appointed; and

(b) the Monetary Authority is of the opinion that the Scheme member—

(i) is likely to become unable to meet its obligations;

(ii) is about to suspend payment to its depositors; or

(iii) is insolvent, has ceased to pay its debts in the ordinary course of business, or cannot pay its debts as they become due,

the Monetary Authority may, after consultation with the Financial Secretary, decide that compensation should be paid from the Fund to the depositors of the Scheme member in accordance with this Ordinance and shall thereupon serve on the Board a written notice of the Monetary Authority’s decision.