230CDirection not grounds for denial of obligations

230C Direction not grounds for denial of obligations

(1) Subject to subsections (2) and (3), the fact that a life company is subject to a direction by APRA under section 230B is not a ground for any other party to a contract to which the company is a party to deny any obligations under that contract, accelerate any debt under that contract or close out any transaction relating to that contract. (2) If a life company is prevented from fulfilling its obligations under a contract because of a direction under section 230B, other than a direction under paragraph 230B(2)(m), the other party or parties to the contract are, subject to any orders made under subsection (3), relieved from obligations owed to the company under the contract. (3) A party to a contract to which subsection (2) applies may apply to the Court for an order relating to the effect on the contract of a direction under section 230B. The order may deal with matters including (but not limited to):

(a) requiring a party to the contract to fulfil an obligation under the contract despite subsection (2);

(b) obliging a party to the contract to take some other action (for example, paying money or transferring property) in view of obligations that were fulfilled under the contract before the direction was made.

The order must not require a person to take action that would contravene the direction, or any other direction under section 230B.