142Exercise of Reserve Bank powers under this Part not grounds for denial of obligations

142 Exercise of Reserve Bank powers under this Part not grounds for denial of obligations

(1) Subject to subsection (6), this section applies if a body corporate (the protected body corporate) is party to an arrangement, whether the proper law of the arrangement is:

(a) a law of the Commonwealth or of a State or Territory; or

(b) a law of a foreign country or a part of a foreign country.

(2) None of the matters mentioned in subsection (3) allows the arrangement, or a party to the arrangement (other than the protected body corporate), to do any of the following:

(a) deny any obligation under the arrangement;

(b) accelerate any debt under the arrangement;

(c) terminate or close out:

(i) the arrangement; or

(ii) any transaction relating to the arrangement;

(d) enforce any security under the arrangement.

(3) The matters are as follows:

(a) the protected body corporate being subject to the exercise of a power under this Part by the Reserve Bank;

(b) a body corporate to which subsection (4) applies being subject to the exercise of a power under this Part by the Reserve Bank;

(c) if section 137 applies to a body corporate to which subsection (4) of this section applies—the financial position of:

(i) that body corporate; or

(ii) any other body corporate to which that subsection applies.

(4) For the purposes of paragraph (3)(b) or (c), this subsection applies to:

(a) a related body corporate of the protected body corporate; or

(b) a body corporate that was a related body corporate of the protected body corporate before a transfer of business or shares under this Part.

Person must not act contrary to this section

(5) A party to the arrangement (other than the protected body corporate) must not:

(a) purport to do an act or thing that is not allowed to be done because of this section; or

(b) purport to do an act or thing that can be done only if the arrangement does a thing that the arrangement is not allowed to do because of this section; or

(c) omit to do an act or thing in circumstances where that omission would only be required or permitted if the arrangement did a thing that the arrangement is not allowed to do because of this section.

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.

Payment Systems and Netting Act 1998 prevails over this section

(6) If there is any inconsistency between: