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 7.3 - LICENSING OF CLEARING AND SETTLEMENT FACILITIES  

Division 2 - Regulation of CS facility licensees  

Subdivision G - Other matters relating to ASIC or Reserve Bank powers  

SECTION 823V   EXERCISE OF RESERVE BANK POWERS TO GIVE DIRECTIONS UNDER SECTION 823F NOT GROUNDS FOR DENIAL OF OBLIGATIONS  

823V(1)    
This section applies if a body corporate is party to an agreement, whether the proper law of the agreement is:

(a)    Australian law; or

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

823V(2)    
None of the matters mentioned in subsection (3) allows the agreement, or a party to the agreement (other than the body corporate), to do any of the following:

(a)    deny any obligation under the agreement;

(b)    accelerate any debt under the agreement;

(c)    terminate or close out the agreement, or any transaction relating to the agreement;

(d)    enforce any security under the agreement.

823V(3)    
The matters are as follows:

(a)    the body corporate being subject to the exercise of a power under section 823F by the Reserve Bank;

(b)    if the body corporate is a member of a group of bodies corporate - another member of the group being subject to the exercise of such a power.

Payment Systems and Netting Act 1998 prevails over this section

823V(4)    
If there is any inconsistency between:

(a)    subsections (1) to (3) of this section; and

(b)    the Payment Systems and Netting Act 1998 ;

that Act prevails to the extent of the inconsistency.

Agreements to which this section does not apply

823V(5)    
This section does not apply to a kind of agreement prescribed by the regulations for the purposes of this subsection.