Banking Act 1959

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

Division 2 - Protection of depositors

Subdivision B - Provisions dealing with control of a body corporate ' s business by a Banking Act statutory manager

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SECTION 14AC Act under section 14AA not ground for denial of obligations

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(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.

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(3)
The matters are as follows:

(a) a Banking Act statutory manager of the body corporate doing an act under subsection 14AA(1) relating to the body corporate;

(b) if the body corporate is a member of a relevant group of bodies corporate - a Banking Act statutory manager of another member of the group doing an act under subsection 14AA(1) relating to that other member.

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History

S 14AC substituted by No 10 of 2018, s 3 and Sch 1 item 143, effective 5 March 2018. For application provisions, see note under Subdiv D heading of Pt II Div 1BA. S 14AC formerly read:

SECTION 14AC Act under section 14AA not ground for denying obligation
(1)
This section applies if an ADI is party to a contract, whether the proper law of the contract is Australian law (including the law of a State or Territory) or law of a foreign country (including the law of part of a foreign country).

(2)
The fact that an ADI statutory manager does an act under subsection 14AA(1) relating to the ADI does not allow the contract, or any other party to the contract, to do any of the following:

(a) deny any obligations under that contract;

(b) accelerate any debt under that contract;

(c) close out any transaction relating to that contract;

(d) enforce any security under that contract.
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History

S 14AC(2) amended by No 43 of 2016, s 3 and Sch 1 item 38, by inserting para (d), applicable in relation to the enforcement of a security after 1 June 2016, even if the security was given before 1 June 2016.

S 14AC inserted by No 105 of 2008, s 3 and Sch 2 item 12, applicable to contracts made after 18 October 2008.

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