Document ID: chunk:federal_register_of_legislation:C2018A00010:clause:2_120
Version: federal_register_of_legislation:C2018A00010
Segment Type: clause
Provision Reference: sch 2 cl 120
Character Range: 232217–233613

120  Subsections 105(1) to (2)
Repeal the subsections, substitute:
 (1) This section applies if a body corporate is party to a contract, whether the proper law of the contract is:
 (a) Australian law (including the law of a State or Territory); or
 (b) law of a foreign country (including the law of part of a foreign country).
 (1A) None of the matters mentioned in subsection (1B) allows the contract, or a party to the contract (other than the body corporate), to do any of the following:
 (a) deny any obligations under the contract;
 (b) accelerate any debt under the contract;
 (c) close out any transaction relating to the contract;
 (d) enforce any security under the contract.
This subsection has effect subject to subsections (2) and (3).
 (1B) The matters are as follows:
 (a) the body corporate being subject to a direction by APRA under section 104;
 (b) if the body corporate is a member of a relevant group of bodies corporate—another member of the group being subject to a direction by APRA under section 104.
 (2) If the body corporate is prevented from fulfilling its obligations under the 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 body corporate under the contract.