Document ID: chunk:federal_register_of_legislation:C2024C00373:section:15d:p1
Version: federal_register_of_legislation:C2024C00373
Segment Type: section
Provision Reference: s 15D (pt 1/3)
Character Range: 59041–61741

15D  When APRA may declare that non‑direction stays continue—related body corporate of regulated body is party to trigger contract
 (1) Subsection (3) applies if:
 (a) a trigger event to which a specified stay provision (other than a direction stay provision) applies:
 (i) is an event that involves a regulated body (the trigger body); and
 (ii) happens in relation to one or more close‑out netting contracts (each of which is a trigger contract) to which a related body corporate of the trigger body (the contracting body) is a party; and
 (b) APRA is satisfied that all the matters in subsection (5) will be satisfied in relation to each entity covered under subsection (2):
 (i) unless subparagraph (ii) applies—at the time the declaration will be made; or
 (ii) if a certificate of transfer will come into force under the Business Transfer Act for a transfer of business from the trigger body to a receiving body—just after that coming into force; and
 (c) each entity covered under subsection (2) is not in external administration (disregarding paragraphs (d), (daa), (da), (db), (e) and (f) of the definition of external administration in section 5); and
 (d) APRA has not already made a declaration under section 15B in relation to the trigger event happening in relation to the trigger contract.
 (2) For the purposes of paragraphs (1)(b) and (c), an entity is covered under this subsection if it is:
 (a) if section 15E does not apply—the trigger body; or
 (b) if section 15E applies because of a transfer of business under the Business Transfer Act from the trigger body to a receiving body:
 (i) in the case of a total transfer of business—the receiving body; or
 (ii) in the case of a partial transfer of business—an entity specified in a determination under subsection 15E(3).
 (3) APRA may, before the end of the resolution period for the trigger event, make a declaration that the specified stay provision is to continue to apply to:
 (a) each trigger contract specified in the declaration; and
 (b) all securities given over financial property, in respect of obligations under each trigger contract specified in the declaration.
 (4) APRA may specify either or both of the following in a declaration under subsection (3):
 (a) one or more trigger contracts;
 (b) one or more classes of trigger contracts.
Note: See subsection 15E(2) for a restriction on when APRA may make a declaration under subsection (2) of this section in the case of a transfer of business from the trigger body to a receiving body.
 (5) For the purposes of paragraph (1)(b), the matters are as follows:
 (a) that the entity covered under subsection (2) is able to meet all its liabilities under:
 (i) close‑out