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 D - Other matters  

SECTION 849CC   EXERCISE OF RESERVE BANK POWERS UNDER THIS PART NOT GROUNDS FOR DENIAL OF OBLIGATIONS  

849CC(1)    
Subject to subsection (5) , this section applies if a body corporate (the protected body corporate ) is party to an arrangement, whether the proper law of the arrangement is:

(a)    Australian law; or

(b)    foreign law, including the law of part of a foreign country.

849CC(2)    
None of the matters mentioned in subsection (3) allows the arrangement, or a party to the arrangement (other than the protected body corporate), to do any of the following:

(a)    deny any obligation under the arrangement;

(b)    accelerate any debt under the arrangement;

(c)    terminate or close out:

(i) the arrangement; or

(ii) any transaction relating to the arrangement;

(d)    enforce any security under the arrangement.

849CC(3)    
The matters are as follows:

(a)    the protected body corporate being subject to the exercise of a power under this Part by the Reserve Bank;

(b)    a body corporate to which subsection (4) applies being subject to the exercise of a power under this Part by the Reserve Bank;

(c)    if section 842A applies to a body corporate to which subsection (4) of this section applies - the financial position of:

(i) that body corporate; or

(ii) any other body corporate to which that subsection applies.

849CC(4)    
For the purposes of paragraph (3)(b) or (c) , this subsection applies to:

(a)    a related body corporate of the protected body corporate; or

(b)    a body corporate that was a related body corporate of the protected body corporate before a transfer of business or shares under this Part.

Payment Systems and Netting Act 1998 prevails over this section

849CC(5)    
If there is any inconsistency between:

(a)    subsections (1) to (4) of this section; and

(b)    the Payment Systems and Netting Act 1998 ;

that Act prevails to the extent of the inconsistency.

Arrangements to which this section does not apply

849CC(6)    
This section does not apply to a kind of arrangement prescribed by the regulations for the purposes of this subsection.