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 15C Certain circumstances not grounds 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) allow the contract, or a party to the contract (other than the body corporate), to do any of the following:

(a) deny any obligations 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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This subsection has effect subject to section 31B .

(3)
The matters are as follows:

(a) a Banking Act statutory manager being in control, or being appointed to take control, of the business of the body corporate;

(b) if the body corporate is a member of a relevant group of bodies corporate - a Banking Act statutory manager being in control, or being appointed to take control, of the business of another member of the group.

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History

S 15C substituted by No 10 of 2018, s 3 and Sch 1 item 191, effective 5 March 2018. For application provisions, see note under Subdiv D heading of Pt II Div 1BA. S 15C formerly read:

SECTION 15C ADI statutory manager being in control not grounds for denial of obligations
(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 is in control of the ADI ' s business does not allow the contract, or a 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.
This subsection has effect subject to section 31B.

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History

S 15C(2) amended by No 43 of 2016, s 3 and Sch 1 item 39, by inserting para (d) and " This subsection has effect subject to section 31B. " , applicable in relation to the enforcement of a security after 1 June 2016, even if the security was given before 1 June 2016.

S 15C and 15D substituted for s 15C by No 105 of 2008, s 3 and Sch 2 item 18, applicable to contracts made after 18 October 2008. S 15C formerly read:

SECTION 15C ADI statutory manager being in control not grounds for denial of obligations
15C
The fact that an ADI statutory manager is in control of an ADI ' s business is not a ground for any other party to a contract to which the ADI is a party to deny any obligations under that contract, accelerate any debt under that contract or close out any transaction relating to that contract.

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