Document ID: chunk:federal_register_of_legislation:C2018A00010:clause:1_11cac
Version: federal_register_of_legislation:C2018A00010
Segment Type: clause
Provision Reference: sch 1 cl 11CAC
Character Range: 23162–24857

11CAC  Conversion or write‑off etc. not grounds for denial of obligations
 (1) This section applies if an entity (the first entity) 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).
 (2) None of the matters mentioned in subsection (3) allows the contract, or a party to the contract (other than the first entity), to do any of the following:
 (a) deny any obligation 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.
 (3) The matters are as follows:
 (a) a relevant instrument being converted in accordance with the terms of the instrument;
 (b) a relevant instrument being written off in accordance with the terms of the instrument;
 (c) the making of a determination (however described) by APRA that results in a relevant instrument being required to be converted or written off in accordance with the terms of the instrument.
 (4) In this section:
relevant instrument means:
 (a) an instrument to which section 11CAB applies:
 (i) that is issued by the first entity; or
 (ii) to which the first entity is a party; or
 (iii) for which the first entity is a conversion entity; or
 (b) if the first entity is a body corporate that is a member of a relevant group of bodies corporate—an instrument to which section 11CAB applies:
 (i) that is issued by another member of the group; or
 (ii) to which another member of the group is a party; or
 (iii) for which another member of the group is a conversion entity.