Document ID: chunk:federal_register_of_legislation:C2016A00043:clause:1_15c:p1
Version: federal_register_of_legislation:C2016A00043
Segment Type: clause
Provision Reference: sch 1 cl 15C (pt 1/2)
Character Range: 30370–33109

15C  When APRA may declare that non‑direction stays continue
 (1) Subsection (2) applies if:
 (a) a trigger event to which a specified stay provision (other than a direction stay provision) applies happens in relation to a close‑out netting contract to which a regulated body is a party; and
 (b) APRA is satisfied that all the matters in subsection (3) will be satisfied in relation to the party in respect of which the declaration under subsection (2) will be made:
 (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—just after that coming into force; and
 (c)  the party in respect of which the declaration under subsection (2) will be made is not in external administration (disregarding paragraphs (d), (e) and (f) of the definition of external administration in section 5); and
 (d) APRA has not already made a declaration under section 15B.
 (2) APRA may, before the end of the resolution period for the trigger event, declare that the specified stay provision is to continue to apply to:
 (a) unless paragraph (b) or (c) applies:
 (i) all close‑out netting contracts to which the regulated body is a party; and
 (ii) all securities given over financial property, in respect of obligations under those close‑out netting contracts; or
 (b) if a certificate of transfer for a total transfer will come into force under the Business Transfer Act:
 (i) all close‑out netting contracts to which the receiving body (within the meaning of that Act) will become a party; and
 (ii) all securities given over financial property, in respect of obligations under those close‑out netting contracts; or
 (c) if a certificate of transfer for a partial transfer will come into force under the Business Transfer Act—either or both of the following:
 (i) all close‑out netting contracts to which the transferring body (within the meaning of that Act) is a party, and all securities given over financial property in respect of obligations under those contracts;
 (ii) all close‑out netting contracts to which the receiving body (within the meaning of that Act) will become a party, and all securities given over financial property in respect of obligations under those contracts.
 (3) For the purposes of paragraph (1)(b), the matters are as follows:
 (a) that the party is able to meet all its liabilities under:
 (i) close‑out netting contracts to which it is a party; and
 (ii) securities given over financial property in respect of obligations of the party under those contracts;
  as and when they become due and payable;
 (b) that the party is solvent (within the meaning of the Corporations Act 2001);
 (c) that the party has