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 849BC   SELF-EXECUTING PROVISIONS  

849BC(1)    
The object of subsection (2) is to ensure that a self-executing provision:

(a)    cannot start to apply for certain reasons; and

(b)    can be the subject of a Court order providing that the provision can only start to apply with the leave of the Court, and in accordance with such terms (if any) as the Court imposes.

849BC(2)    
Section 849BB applies in relation to a self-executing provision in a corresponding way to the way that section applies in relation to a right to terminate:

(a)    an arrangement; or

(b)    an obligation under an arrangement.

For this purpose, assume that section applies with such modifications as are necessary, including any prescribed by the regulations for the purposes of this subsection.

Note 1: This subsection achieves the object in subsection (1) by extending the application of all of the outcomes, exceptions and powers in section 849BB .

Note 2: These modifications include, for example, treating:

(a) a reference that a right cannot be exercised as including a reference that a self-executing provision cannot start to apply; and

(b) a reference that one or more rights are exercisable as including a reference that one or more self-executing provisions can start to apply.

849BC(3)    
In this section:

self-executing provision
means a provision of an arrangement that:

(a) can start to apply automatically:

(i) for one or more reasons; and

(ii) without any party to the arrangement making a decision that the provision should start to apply; and

(b) terminates:

(i) an arrangement; or

(ii) an obligation under an arrangement.