Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section applies if:
(a) a certificate issued under section 838A for a partial transfer of business comes into force; and
(b) just before the partial transfer, the target body is a party to:
(i) a close - out netting contract (within the meaning of the Payment Systems and Netting Act 1998 ); or
(ii) a security given over financial property (within the meaning of that Act), in respect of an obligation of the target body under a close - out netting contract; or
(iii) a market netting contract (within the meaning of that Act); or
(iv) a security given over property, in respect of an obligation of the target body under a market netting contract; or
(v) an approved netting arrangement (within the meaning of that Act); and
(c) the partial transfer covers some (but not all) of the following assets and liabilities:
(i) the assets and liabilities the body has, under the close - out netting contract, market netting contract or approved netting arrangement, with respect to another party to the contract or arrangement (the counterparty );
(ii) those assets that are property over which security is given in respect of an obligation of the target body under the close - out netting contract or the market netting contract.
Note: The Payment Systems and Netting Act 1998 affects what the assets and liabilities of a party to a close - out netting contract, market netting contract or approved netting arrangement are taken to include.
(2) The partial transfer is void:
(a) to the extent of the assets or liabilities the target body has, just before the partial transfer, under the close - out netting contract, market netting contract or approved netting arrangement, with respect to the counterparty; and
(b) if security is given over financial property (within the meaning of the Payment Systems and Netting Act 1998 ) in respect of an obligation of the target body under a close - out netting contract--to the extent that the assets are financial property in the possession or control of one of the following persons just before the partial transfer:
(i) the counterparty;
(ii) another person (who is not the target body) on behalf of the counterparty, under the terms of an arrangement evidenced in writing; and
(c) if security is given over property in respect of an obligation of the target body under a market netting contract--to the extent that the assets are that property.