Banking Act 1959

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

Division 3A - Covered bonds  

SECTION 31B   Protection of certain contractual rights  

Directions by APRA

(1)    
Subsection 11CD(1A) (direction not grounds for denial of obligations) does not prevent the exercise of a contractual right in relation to an asset that secures liabilities to holders of covered bonds, or their representatives, if payments under the covered bonds to the holders or representatives are not made.

Banking Act statutory manager in control

(2)    

The following provisions do not prevent the exercise of a contractual right in relation to an asset that secures liabilities to holders of covered bonds, or their representatives, if payments under the covered bonds to the holders or representatives are not made:

(a) section 15BA (moratorium - effect of Banking Act statutory management on enforcement process regarding property);

(b) section 15BB (moratorium - effect of Banking Act statutory management on disposal of property);

(c) section 15BC (moratorium - restrictions on exercise of third party property rights);

(d) section 15C (Banking Act statutory manager being in control not grounds for denial of obligations).