146Self‑executing provisions

146 Self‑executing provisions

(1) The object of subsection (2) is to ensure that a self‑executing provision:

(a) cannot start to apply against a body corporate for certain reasons; and

(b) can be the subject of a Court order providing that the provision can only start to apply against a body corporate with the leave of the Court, and in accordance with such terms (if any) as the Court imposes.

(2) Sections 143 to 145 apply in relation to a self‑executing provision in a corresponding way to the way those sections apply in relation to a right. For this purpose, assume those sections apply with such modifications as are necessary, including any modifications determined in an instrument made under subsection (3).

Note 1: This subsection achieves the object in subsection (1) by extending the application of all of the outcomes, exceptions and powers in sections 143 to 145.

Note 2: These modifications include, for example, treating:

(a) a reference that a right cannot be enforced (however described) as including a reference that a self‑executing provision cannot start to apply; and

(b) the words “if the right arises for that reason by express provision (however described) of an arrangement” as being omitted from subsection 143(1); and

(c) a reference that one or more rights are enforceable as including a reference that one or more self‑executing provisions can start to apply.

(3) The Reserve Bank may, by legislative instrument, determine modifications for the purposes of subsection (2).

(4) In this section:

self‑executing provision means a provision of an arrangement that can start to apply automatically:

(a) for one or more reasons; and

(b) without any party to the arrangement making a decision that the provision should start to apply.