127Time and effect of transfer of business

127 Time and effect of transfer of business

(1) When a certificate issued under section 125 for a transfer of business comes into force, the receiving body becomes the successor in law of the target body, to the extent of the transfer. In particular:

(a) if the transfer is a total transfer—all the assets and liabilities of the target body, wherever those assets and liabilities are located, become assets and liabilities of the receiving body (in the same capacity as they were assets and liabilities of the target body) without any transfer, conveyance or assignment; and

(b) if the transfer is a partial transfer—all the assets and liabilities included in the list referred to in subparagraph 125(2)(c)(ii), wherever those assets and liabilities are located, become assets and liabilities of the receiving body (in the same capacity as they were assets and liabilities of the target body) without any transfer, conveyance or assignment; and

(c) to the extent of the transfer, the duties, obligations, immunities, rights and privileges applying to the target body apply to the receiving body.

Certificate provisions for things to happen on transfer etc. are taken to have happened etc.

(2) If the certificate includes provisions of a kind referred to in paragraph 125(5)(b), then:

(a) if the provisions specify that particular things are to happen or are taken to be the case—those things are, by force of this subsection, taken to happen, or to be the case, in accordance with those provisions; and

(b) if the provisions specify a mechanism for determining things that are to happen or are taken to be the case—things determined in accordance with the mechanism are, by force of this subsection, taken to happen, or to be the case, as determined in accordance with that mechanism.

Agreed provisions for things to happen on transfer etc. are taken to have happened etc.

(3) If the Reserve Bank has approved a statement under subsection 121(2) in relation to the transfer, then:

(a) if the statement specifies that particular things are to happen or are taken to be the case—those things are, by force of this subsection, taken to happen, or to be the case, in accordance with the statement; and

(b) if the statement specifies a mechanism for determining things that are to happen or are taken to be the case—things determined in accordance with that mechanism are, by force of this subsection, taken to happen, or to be the case, as determined in accordance with that mechanism.