S.L. 371.9 Art. 16Subrogation and recovery.

(1) Without prejudice to the rights which the Scheme may have at law, the Scheme shall, upon paying compensation under these regulations, immediately and automatically be subrogated to all the rights of the depositor, up to the amount of the compensation paid, as against the member and, or any third party in respect of or arising out of the deposits being unavailable to the depositor.

(2) Upon paying compensation under these regulations, the Scheme shall decide in its absolute discretion which recoveries are likely to be both reasonably possible and cost effective to pursue.

(3) Where the Scheme makes payments in the context of resolution proceedings, including the application of resolution tools or the exercise of resolution powers in accordance with regulation 33, the Scheme shall have a claim against the relevant credit institution for an amount equal to its payments. That claim shall rank at the same level as covered deposits under Maltese law governing normal insolvency proceedings.