Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The Reserve Bank may, by notifiable instrument, declare that section 14 does not apply to a close - out netting contract if it is satisfied that systemic disruption in the financial system could result if a party to the contract went into external administration.
Note: This section is intended to allow the Reserve Bank to require an economically significant multilateral netting arrangement to meet the standards in Part 3 of this Act. It may be necessary to amend the rules governing the arrangement before it can be approved under that Part.
(2) A declaration under subsection (1):
(a) may only relate to a contract entered into after the day the declaration is registered on the Federal Register of Legislation under the Legislation Act 2003 ; and
(b) ceases to have effect at the end of 6 months after the day it is registered.