Document ID: chunk:federal_register_of_legislation:C2024C00373:section:15c:p2
Version: federal_register_of_legislation:C2024C00373
Segment Type: section
Provision Reference: s 15C (pt 2/3)
Character Range: 55503–58264

become a party immediately after the transfer), and all securities given over financial property in respect of obligations under those contracts.
 (3) For the purposes of paragraph (1)(b), the matters are as follows:
 (a) that the party is able to meet all its liabilities under:
 (i) close‑out netting contracts to which it is a party; and
 (ii) securities given over financial property in respect of obligations of the party under those contracts;
  as and when they become due and payable;
 (b) that the party is solvent (within the meaning of the Corporations Act 2001);
 (c) if the party is an ADI, a general insurer or a life company—that the party has each material authorisation (however described) necessary for its regulated business;
 (d) if minimum capital requirements under the Banking Act 1959, the Insurance Act 1973 or the Life Insurance Act 1995 apply to the party—that either subsection (4) or subsection (5) is satisfied in respect of the party.
 (4) This subsection is satisfied if the party's level of capital complies with the minimum capital requirements that apply to it under:
 (a) the Banking Act 1959, the Insurance Act 1973 or the Life Insurance Act 1995 (as the case requires); and
 (b) the applicable prudential standards made under that Act.
 (5) This subsection is satisfied if:
 (a) arrangements are in place to ensure that the party performs all its obligations under:
 (i) close‑out netting contracts to which it is a party; and
 (ii) securities given over financial property in respect of obligations of the party under those contracts;
  as and when they are due to be performed; and
 (b) those arrangements will remain in place until at least the earliest day on which one or more of the following occurs:
 (i) subsection (4) is satisfied;
 (ii) if a Banking Act statutory manager is in control of the party's business—APRA makes an ultimate termination of control under subsection 13C(3) of the Banking Act 1959;
 (iii) if an Insurance Act statutory manager is in control of the party's business—APRA makes an ultimate termination of control under subsection 62ZOC(3) of the Insurance Act 1973;
 (iv) if a Life Insurance Act statutory manager is in control of the party's business—APRA makes an ultimate termination of control under subsection 179AC(3) of the Life Insurance Act 1995;
 (v) if the party is under judicial management under the Insurance Act 1973—an order under section 62ZF of that Act cancelling the judicial management comes into force;
 (vi) if the party is under judicial management under the Life Insurance Act 1995—an order under section 172 of that Act cancelling the judicial management comes into force.
 (6) A declaration under subsection (2) cannot be varied or revoked.
 (7) A declaration under