Document ID: chunk:federal_register_of_legislation:C2024A00087:clause:1_831a:p1
Version: federal_register_of_legislation:C2024A00087
Segment Type: clause
Provision Reference: sch 1 cl 831A (pt 1/3)
Character Range: 22823–25542

831A  Reserve Bank may exercise crisis resolution powers if certain conditions are satisfied
 (1) The Reserve Bank may take action in accordance with this Part in relation to a CS facility licensee if any of the following conditions are satisfied in relation to the licensee:
 (a) the licensee requests the Reserve Bank to take action and the Reserve Bank reasonably believes that an event relating to the licensee is likely to pose a threat to:
 (i) the stability of the financial system in Australia; or
 (ii) the ability of the licensee to continue to provide one or more clearing and settlement facility services that are critical to the functioning of the financial system in Australia;
 (b) the licensee contravenes a direction issued under Part 7.3 by the Reserve Bank and the Reserve Bank reasonably believes that the contravention is likely to pose a threat to:
 (i) the stability of the financial system in Australia; or
 (ii) the ability of the licensee to continue to provide one or more clearing and settlement facility services that are critical to the functioning of the financial system in Australia;
 (c) the licensee notifies the Reserve Bank that:
 (i) the licensee has ceased, intends to cease or is likely to cease providing one or more clearing and settlement facility services that are critical to the functioning of the financial system in Australia; or
 (ii) in the absence of external support, the licensee is likely to be unable to continue to provide one or more clearing and settlement facility services in a way that causes or promotes stability in the Australian financial system; or
 (iii) in the absence of external support, the licensee is likely to be unable to continue to provide one or more clearing and settlement facility services that are critical to the functioning of the financial system in Australia;
 (d) the Reserve Bank reasonably believes that, in the absence of external support, the licensee is likely to be unable to:
 (i) continue to provide one or more clearing and settlement facility services in a way that causes or promotes stability in the Australian financial system; or
 (ii) continue to provide one or more clearing and settlement facility services that are critical to the functioning of the financial system in Australia;
 (e) the licensee notifies the Reserve Bank that:
 (i) the licensee's financial viability is at risk or is likely to be at risk; or
 (ii) in the absence of external support, the licensee's financial viability is likely to be at risk;
 (f) the Reserve Bank reasonably believes that, in the absence of external support, the licensee's financial viability is likely to be at risk;
 (g) an external administrator of the licensee has been