Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection (5), this section applies if a body corporate (the protected body corporate ) is party to an arrangement, whether the proper law of the arrangement is:
(a) Australian law; or
(b) foreign law, including the law of part of a foreign country.
(2) None of the matters mentioned in subsection (3) allows the arrangement, or a party to the arrangement (other than the protected body corporate), to do any of the following:
(a) deny any obligation under the arrangement;
(b) accelerate any debt under the arrangement;
(c) terminate or close out:
(i) the arrangement; or
(ii) any transaction relating to the arrangement;
(d) enforce any security under the arrangement.
(3) The matters are as follows:
(a) the protected body corporate being subject to the exercise of a power under this Part by the Reserve Bank;
(b) a body corporate to which subsection (4) applies being subject to the exercise of a power under this Part by the Reserve Bank;
(c) if section 842A applies to a body corporate to which subsection (4) of this section applies--the financial position of:
(i) that body corporate; or
(ii) any other body corporate to which that subsection applies.
(4) For the purposes of paragraph (3)(b) or (c), this subsection applies to:
(a) a related body corporate of the protected body corporate; or
(b) a body corporate that was a related body corporate of the protected body corporate before a transfer of business or shares under this Part.
Payment Systems and Netting Act 1998 prevails over this section
(5) If there is any inconsistency between:
(a) subsections (1) to (4) of this section; and
(b) the Payment Systems and Netting Act 1998 ;
that Act prevails to the extent of the inconsistency.
Arrangements to which this section does not apply
(6) This section does not apply to a kind of arrangement prescribed by the regulations for the purposes of this subsection.