Document ID: chunk:federal_register_of_legislation:C2020A00116:clause:1_5
Version: federal_register_of_legislation:C2020A00116
Segment Type: clause
Provision Reference: sch 1 cl 5
Character Range: 108184–109627

5  Arrangements that are legally binding under foreign law
 (1) If:
 (a) a core State/Territory entity contravenes paragraph 2(3)(a) in relation to a pre‑existing foreign arrangement between the State/Territory entity and a core foreign entity; and
 (b) the arrangement is legally binding under a foreign law;
then this clause applies to the arrangement.
 (2) The core State/Territory entity must:
 (a) within 14 days, or such longer period (if any) prescribed by the rules:
 (i) notify the core foreign entity that this clause applies to the arrangement; and
 (ii) take steps to terminate the arrangement in accordance with the foreign law; and
 (b) as soon as practicable after it has complied with paragraph (a), notify the Minister, in writing, of its compliance with that paragraph.
 (3) The core State/Territory entity must not, at any time after the contravention:
 (a) give effect to the arrangement; or
 (b) hold out, or conduct itself on the basis, that it can give effect to the arrangement.
 (4) The core foreign entity must not, from the time it is notified under subclause (2) that this clause applies to the arrangement:
 (a) give effect to the arrangement in Australia; or
 (b) hold out in Australia, or conduct itself in Australia on the basis, that it can give effect to the arrangement.
 (5) This clause does not apply to an exempt arrangement.

Subdivision B—Pre‑existing foreign arrangements that are not legally binding