Document ID: chunk:federal_register_of_legislation:C2016A00043:clause:1_15c:p2
Version: federal_register_of_legislation:C2016A00043
Segment Type: clause
Provision Reference: sch 1 cl 15C (pt 2/2)
Character Range: 32875–35471

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) that the party has each material authorisation (however described) necessary for its regulated business;
 (d) that either subsection (4) or subsection (5) is satisfied.
 (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) for subsection 15C(2) of the Banking Act 1959 (ADI statutory manager in control)—APRA makes an ultimate termination of control under subsection 13C(3) of that Act;
 (iii) for subsection 62V(2) of the Insurance Act 1973 (judicial manager in control)—an order under section 62ZF of that Act cancelling the judicial management comes into force;
 (iv) for subsection 165B(2) of the Life Insurance Act 1995 (judicial manager in control)—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 this section is not a legislative instrument.
 (8) The regulations may do any of the following:
 (a) prescribe requirements relating to how declarations under subsection (2) are to be made (including requirements relating to the content or form of declarations);
 (b) prescribe requirements relating to the notification or publication of declarations under subsection (2);
 (c) include provisions that apply to determining, either generally or for a particular purpose, the time when declarations under subsection (2) are taken to be made.
Note: Regulations under paragraph (c) may (for example) provide that, for the purpose of this section, a declaration is taken not to have been made until certain requirements of regulations under paragraph (b) have been complied with.