Document ID: chunk:federal_register_of_legislation:C2010C00224:clause:2_105
Version: federal_register_of_legislation:C2010C00224
Segment Type: clause
Provision Reference: sch 2 cl 105
Character Range: 97290–98946

105  Direction not grounds for denial of obligations

 (1) Subject to subsections (2) and (3), the fact that a general insurer or an authorised NOHC is subject to a direction by APRA under section 104 is not a ground for any other party to a contract to which the insurer or NOHC, or a subsidiary of the insurer or the NOHC, is a party:
 (a) to deny any obligations under that contract; or
 (b) to accelerate any debt under that contract; or
 (c) to close out any transaction relating to that contract.

 (2) If a general insurer or an authorised NOHC, or a subsidiary of a general insurer or authorised NOHC, is prevented from fulfilling its obligations under a contract because of a direction under section 104, other than a direction under paragraph 104(3)(t), the other party or parties to the contract are, subject to any orders made under subsection (3) of this section, relieved from obligations owed to the insurer or NOHC under the contract.

 (3) A party to a contract to which subsection (2) applies may apply to the Federal Court of Australia for an order relating to the effect on the contract of a direction under section 104. The order may deal with matters including (but not limited to):
 (a) requiring a party to the contract to fulfil an obligation under the contract despite subsection (2); or
 (b) obliging a party to the contract to take some other action (for example, paying money or transferring property) in view of obligations that were fulfilled under the contract before the direction was made.
The order must not require a person to take action that would contravene the direction, or any other direction under section 104.