7Application of Act

7 Application of Act

(1) This Act applies only as provided in this section. (2) Subject to subsection (6), if: (a) an eligible local ADI is a subsidiary of a foreign corporation; and (b) the foreign corporation is an eligible foreign ADI; and (c) the eligible local ADI or one of its eligible subsidiaries (if any) is proposing to transfer, or transfers, an asset or liability to the foreign corporation; this Act applies in relation to the transfer. (3) Subject to subsection (6), if: (a) an eligible local ADI is a subsidiary of a foreign corporation (parent corporation); and (b) the eligible local ADI or one of its eligible subsidiaries (if any) is proposing to transfer, or transfers, an asset or liability to an eligible foreign ADI that is a subsidiary of the parent corporation; this Act applies in relation to the transfer. (4) Subject to subsection (6), if: (a) an eligible money market corporation is a subsidiary of a foreign corporation; and (b) the foreign corporation is an eligible foreign ADI; and (c) the eligible money market corporation or one of its eligible subsidiaries (if any) is proposing to transfer, or transfers, an asset or liability to the foreign corporation; this Act applies in relation to the transfer. (5) Subject to subsection (6), if: (a) an eligible money market corporation is a subsidiary of a foreign corporation; and (b) the eligible money market corporation or one of its eligible subsidiaries (if any) is proposing to transfer, or transfers, an asset or liability to a newly established local ADI that is a wholly‑owned subsidiary (within the meaning of the Corporations Act 2001) of the foreign corporation; this Act applies in relation to the transfer. (6) This Act applies in relation to the transfer of an asset or liability only if: (a) the Treasurer determines in writing that the transfer is reasonably required for the proper organisation of the activities in Australia of the transferring corporation and of the receiving corporation, following the grant of an ADI authority to the receiving corporation; and (b) within the prescribed period (see subsection (7)) in relation to the transfer, the transferring corporation gives notice in writing of the proposed transfer, identifying the asset or liability to be transferred, to: (i) the Treasurer; and (ii) if the law of a State or Territory requires that the transfer be registered—the person authorised under that law to register the transfer; and (c) the transfer is effected before 1 July 2006. (7) For the purposes of paragraph (6)(b), the prescribed period in relation to the transfer of an asset or liability is: (a) if the receiving corporation was in possession of an ADI authority on the day on which this Act commences—the period of 6 months from that day; or (b) if paragraph (a) does not apply—the period of 6 months from the day on which the receiving corporation is granted an ADI authority.