Document ID: chunk:federal_register_of_legislation:C2024A00087:clause:1_849cc
Version: federal_register_of_legislation:C2024A00087
Segment Type: clause
Provision Reference: sch 1 cl 849CC
Character Range: 151200–153209

849CC  Exercise of Reserve Bank powers under this Part not grounds for denial of obligations
 (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.
 (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.
 (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.
 (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
 (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
 (6) This section does not apply to a kind of arrangement prescribed by the regulations for the purposes of this subsection.