Banking Act 1959
Part II - Provisions relating to the carrying on of banking business
Division 2 - Protection of depositors
Subdivision AA - Recapitalisation directions by APRA
View history note
Hide history noteSECTION 13N Recapitalisation direction not grounds for denial of obligations
(1)
This section applies if a body corporate is party to a contract, whether the proper law of the contract is:
(a)
Australian law (including the law of a State or Territory); or
(b)
law of a foreign country (including the law of part of a foreign country).
(2)
None of the matters mentioned in subsection (3) allows the contract, or a party to the contract (other than the body corporate), to do any of the following:
(a)
deny any obligation under the contract;
(b)
accelerate any debt under the contract;
(c)
close out any transaction relating to the contract;
(d)
enforce any security under the contract.
(3)
The matters are as follows:
(a)
the body corporate being subject to a recapitalisation direction;
(b)
if the body corporate is a member of a relevant group of bodies corporate
-
another member of the group being subject to a recapitalisation direction.
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