89Simplified outline of this Part

89 Simplified outline of this Part

The Reserve Bank may take actions under this Part that are appropriate to manage or respond to a designated entity in crisis.

A designated entity is in crisis if certain conditions are met in relation to the entity (see section 90). These conditions relate to acts or events that are likely to pose a threat to the ability of the designated entity to continue to provide one or more cash distribution services that are critical to the availability of cash in Australia.

Some of the conditions relate to related bodies corporate of the designated entity.

The actions the Reserve Bank may take include:

(a) placing the designated entity, or a related body corporate that is incorporated in Australia, under statutory management; and

(b) compulsorily transferring all or part of the shares of, or business of, the designated entity, or a related body corporate that is incorporated in Australia, to another body corporate; and

(c) directing the designated entity, or a related body corporate that is incorporated in Australia, to do or refrain from doing an act or thing.

If a body corporate is under statutory management or subject to a transfer or direction, a moratorium and stays apply to the body corporate.

The Minister, with the Finance Minister’s approval, may make an arrangement and authorise the payment of a specified amount if certain conditions are met in relation to the entity (see section 90) and it is for the purposes of ensuring the continuity of critical cash distribution services.

The Reserve Bank has powers to ensure compliance with this Part, to investigate non‑compliance and to enforce this Part. Enforcement mechanisms include civil and criminal penalties.