Commonwealth Consolidated Acts

FINANCIAL SECTOR (TRANSFER AND RESTRUCTURE) ACT 1999 - SECT 36AB

  (1)   This section applies if:

  (a)   a certificate of transfer comes into force in respect of a partial transfer; and

  (b)   just before the partial transfer, the transferring body is a party to:

  (i)   a close - out netting contract; or

  (ii)   a security given over financial property, in respect of an obligation of the transferring body under a close - out netting contract; or

  (iii)   a market netting contract; or

  (iv)   a security given over property, in respect of an obligation of the transferring body under a market netting contract; or

  (v)   an approved netting arrangement; 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 transferring 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 transferring 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 in respect of an obligation of the transferring 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 transferring 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 transferring body under a market netting contract--to the extent that the assets are that property.