154Stay on exercising termination rights

154 Stay on exercising termination rights

Stay on exercising termination rights

(1) Subject to subsections (2) and (3), a right to terminate:

(a) an arrangement; or

(b) an obligation under an arrangement;

that arises:

(c) by express provision (however described) of an arrangement; or

(d) because of anything done in accordance with a direction given under Division 3;

cannot be exercised if a body corporate to which this Division applies is a party to the arrangement.

Rights not subject to the stay

(2) Subsection (1) does not apply to the right if it is:

(a) a right that is exercisable only in particular circumstances (other than circumstances relating to the manner in which the right is exercised, such as a requirement relating to giving notice about exercising the right); or

(b) a right:

(i) under an arrangement entered into after this Division begins to apply to the body corporate; or

(ii) that arises because of anything done in accordance with a direction given, after this Division begins to apply to the body corporate, under Division 3.

(3) Subsection (1) does not apply to the exercise of a right if, before the exercise of the right:

(a) the Reserve Bank; or

(b) if a liquidator or provisional liquidator of the body corporate is appointed after this Division ceases to apply to the body corporate—the liquidator or provisional liquidator;

consents in writing to the exercise of the right.