Clause 29

the Agency has paid compensation to an insured depositor or any person referred to in section 22(7) out of the DI Fund in accordance with this Act;

such compensation is, or will be, accorded priority in the event of the winding up of the failed DI Scheme member under section 62 of the Banking Act (Cap. 19) or section 44A of the Finance Companies Act (Cap. 108), as the case may be; and

the failed DI Scheme member has one or more existing claims against the insured depositor,the liquidator may bring legal proceedings with respect to those claims in the name, and on behalf, of the failed DI Scheme member against the insured depositor or any person who received compensation on behalf of the insured depositor, to recover such moneys as may be necessary to put the failed DI Scheme member into the position it would have been as against the insured depositor with respect to those claims, if —

the Agency had not paid out any compensation or been accorded priority under section 62 of the Banking Act or section 44A of the Finance Companies Act, as the case may be, in respect of the compensation paid to the insured depositor; and (ii)the liquidator had applied the same rules with regard to the respective rights of debts provable and the valuation of future and contingent liabilities as are in force for the time being under the law relating to bankruptcy in relation to the estates of persons adjudged bankrupt, as if the failed DI Scheme member were a person so adjudged.