11CACConversion or write‑off etc. not grounds for denial of obligations

#### 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.