139Moratorium—enforcement process regarding property

139 Moratorium—enforcement process regarding property

(1) Subject to subsections (2) and (5), a person must not begin or proceed with an enforcement process (within the meaning of the Corporations Act 2001) in relation to property of a body corporate if section 137 applies to the body corporate.

Note: An injunction may be granted under Part 7 of the Regulatory Powers Act in respect of a contravention of this subsection: see section 186.

(2) Subsection (1) does not apply if:

(a) the Federal Court grants leave for the process to be begun or continued on the ground that the person would be caused hardship if leave were not granted; or

(b) the beginning or continuing of the process is in accordance with such terms (if any) as the Federal Court imposes.

(3) A person intending to apply for leave of the Federal Court under paragraph (2)(a) must give the Reserve Bank at least 10 days notice of the intention to apply (or a shorter period, if the Federal Court considers that exceptional circumstances make this necessary).

(4) The Reserve Bank may apply to the Federal Court to be joined as a party to the proceedings for leave. If the Reserve Bank is joined as a party, the Federal Court must have regard to the Reserve Bank’s views in deciding:

(a) whether to grant leave under paragraph (2)(a); and

(b) if the Federal Court decides to grant the leave—whether to impose terms as mentioned in paragraph (2)(b); and

(c) if the Federal Court decides to impose such terms—the nature of those terms.

(5) Subsection (1) also does not apply if:

(a) the Reserve Bank consents to the process beginning or continuing; or

(b) for a body corporate under statutory management—the statutory manager consents to the process beginning or continuing.

(6) The Reserve Bank (or the statutory manager) cannot revoke a consent given for the purposes of subsection (5).