Banking Act 1959

Part II - Provisions relating to the carrying on of banking business  

Division 1A - Prudential supervision and monitoring of ADIs and authorised NOHCs  

Subdivision B - Conversion and write-off provisions  

SECTION 11CAB   Conversion and write-off provisions  

Application

(1)    
This section applies in relation to an instrument that contains terms that are for the purposes of the conversion and write-off provisions and that is issued by, or to which any of the following is a party:

(a) an ADI;

(b) a holding company of an ADI;

(c) a subsidiary or related subsidiary of an ADI;

(d) an entity of a kind prescribed by the regulations for the purposes of this paragraph.

Conversion of instrument despite other laws etc.

(2)    
The instrument may be converted in accordance with the terms of the instrument despite:

(a) any Australian law or any law of a foreign country or a part of a foreign country, other than a specified law; and

(b) the constitution of any of the following entities (the relevant entity ):

(i) the entity issuing the instrument;

(ii) any entity that is a party to the instrument;

(iii) any conversion entity for the instrument; and

(c) any contract or arrangement to which a relevant entity is a party; and

(d) any listing rules or operating rules of a financial market in whose official list a relevant entity is included; and

(e) any operating rules of a clearing and settlement facility through which the instrument is traded.

Write-off of instrument despite other laws etc.

(3)    
The instrument may be written off in accordance with the terms of the instrument despite:

(a) any Australian law or any law of a foreign country or a part of a foreign country; and

(b) the constitution of either of the following entities (the relevant entity ):

(i) the entity issuing the instrument;

(ii) any entity that is a party to the instrument; and

(c) any contract or arrangement to which a relevant entity is a party; and

(d) any listing rules or operating rules of a financial market in whose official list a relevant entity is included; and

(e) any operating rules of a clearing and settlement facility through which the instrument is traded.