Oct 27 (Reuters) - National Australia Bank Ltd NAB.AX
* Agreed settlement with Australian Securities & Investments Commission (ASIC) of bank bill swap rate (BBSW) legal action
* NAB has agreed to a $10 million penalty and to pay ASIC's costs of $20 million
* NAB will also make a donation of $20 million to a financial consumer protection fund nominated by ASIC
* Impact of settlement will be reflected in NAB's 2017 financial year results
* NAB and ASIC will make an application to federal court for approval of settlement
* To agree to make enhancements to policies, procedures, systems & framework to monitor employees regarding BBSW businesses
* BBSW enhancement process to be overseen by independent expert to be appointed by ASIC