Document ID: chunk:federal_register_of_legislation:C2016A00043:clause:1_30:p2
Version: federal_register_of_legislation:C2016A00043
Segment Type: clause
Provision Reference: sch 1 cl 30 (pt 2/2)
Character Range: 18594–20260

in relation to the contract;
 (d) entering into one or more close‑out netting contracts with another person;
 (e) doing anything mentioned in paragraph (a), (b) or (c) under a close‑out netting contract mentioned in paragraph (d).
 (8) Subsection (7) does not apply to a thing mentioned in that subsection done by a party to a close‑out netting contract in relation to another person if:
 (a) the transaction did not result from the operation of section 22, 35 or 36R of the Business Transfer Act; and
 (b) either of the following is satisfied:
 (i) the other person did not act in good faith in entering into the transaction;
 (ii) the other person neither provided valuable consideration under, nor changed their position in reliance on, the transaction.
 (9) If security is given over financial property, in respect of obligations of a party to a close‑out netting contract, then:
 (a) subsection (3) applies in relation to the security in the same way as it applies in relation to the contract; and
 (b) subsection (4) applies in relation to rights and obligations under the security in the same way as it applies in relation to rights and obligations under the contract; and
 (c) subsection (5) applies in relation to an obligation owed by a party to the security in the same way as it applies in relation to an obligation owed by a party to the contract; and
 (d) subsection (7) applies to things done by a party to the security in relation to the security, or a right or obligation under the security, in the same way as it applies in relation to things done by a party to the contract in relation to the contract, or a right or obligation under the contract.