Document ID: chunk:federal_register_of_legislation:C2024C00373:section:12
Version: federal_register_of_legislation:C2024C00373
Segment Type: section
Provision Reference: s 12
Character Range: 32130–33406

12  Reserve Bank may approve netting arrangement
 (1) The Reserve Bank may approve the arrangement if it is satisfied that:
 (a) systemic disruption in the financial system could result if a participant went into external administration and the arrangement were not approved under this section; and
 (b) the arrangement provides for netting to occur at least once on each business day; and
 (c) the rules governing the arrangement establish a coordinator for the arrangement; and
 (d) the coordinator of the arrangement has the resources, competency and integrity needed to administer the arrangement; and
 (e) the rules governing the arrangement provide that if a party to the arrangement goes into external administration:
 (i) the party must notify the coordinator as soon as practicable; and
 (ii) the coordinator may exclude the party from the arrangement; and
 (f) the rules governing the arrangement require a party to the arrangement to notify the coordinator as soon as practicable if they have reasonable grounds to suspect that another party to the arrangement is insolvent;
and of any other matters specified in the regulations.
 (2) An approval:
 (a) must be given in writing; and
 (b) may be given subject to the terms and conditions specified in the approval.