Corporations Act 2001

CHAPTER 7 - FINANCIAL SERVICES AND MARKETS  

Note: This Chapter applies to a CCIV in a modified form: see Division 4 of Part 8B.7 .

PART 7.3B - CRISIS RESOLUTION FOR CS FACILITY LICENSEES  

Division 9 - Other matters  

Subdivision C - Temporary suspension of termination rights  

SECTION 849BB   STAY ON EXERCISING TERMINATION RIGHTS  

Stay on exercising termination rights

849BB(1)    
Subject to subsections (2) and (4) , a right to terminate:

(a)    an arrangement; or

(b)    an obligation under an arrangement;

that arises:

(c)    by express provision (however described) of an arrangement; or

(d)    because of anything done in accordance with a direction given under section 823F ;

cannot be exercised if a body corporate to which this Subdivision applies is a party to the arrangement.

Rights not subject to the stay

849BB(2)    
Subsection (1) does not apply to the right if it is:

(a)    a right that is exercisable only in particular circumstances (other than circumstances relating to the manner in which the right is exercised, such as a requirement relating to giving notice about exercising the right); or

(b)    a right:

(i) under an arrangement entered into after this Subdivision begins to apply to the body corporate; or

(ii) that arises because of anything done in accordance with a direction given, after this Subdivision begins to apply to the body corporate, under section 823F ; or

(c)    a right contained in a kind of arrangement:

(i) prescribed by the regulations for the purposes of this subparagraph; or

(ii) declared under paragraph (3)(a) of this section; or

(d)    a right of a kind:

(i) prescribed by the regulations for the purposes of this subparagraph; or

(ii) declared under paragraph (3)(b) ; or

(e)    a right of a kind declared under paragraph (3)(c) , and the circumstances specified in that declaration exist.

849BB(3)    
For the purposes of subsection (2) , the Minister may, by legislative instrument:

(a)    declare kinds of arrangements referred to in a specified law of the Commonwealth; or

(b)    declare kinds of rights to which subsection (1) does not apply; or

(c)    declare kinds of rights to which subsection (1) does not apply in specified circumstances.

849BB(4)    
Subsection (1) does not apply to the exercise of a right if, before the exercise of the right:

(a)    the Reserve Bank; or

(b)    if a liquidator of the body corporate is appointed after this Subdivision ceases to apply to the body corporate - the liquidator;

consents in writing to the exercise of the right.