107Financial security for a transferred licence

107 Financial security for a transferred licence

(1) This section applies if: (a) the Minister has decided to transfer a licence, as mentioned in subparagraph 72(1)(c)(ii) of the Act; or (b) a licence has been transferred, as mentioned in subparagraph 72(1)(c)(iii) of the Act. (2) For the purposes of subsections 72(2) and (3) of the Act, as long as the licence remains in force: (a) all of the transferor’s obligations in relation to the licence under sections 117 and 118 of the Act continue until, and unless, the obligations cease under paragraph (6)(a) of this section; and (b) both the transferor and the transferee must comply with sections 117 and 118 of the Act in relation to the licence until the transferor’s obligations cease under paragraph (6)(a) of this section.

Note: If the Minister makes a determination under subsection (5), the transferor’s obligations cease, while the transferee’s obligations continue.

(3) The transferor may apply to the Minister for the Minister to make a determination under subsection (5). (4) The application: (a) must be made in the manner and form that is: (i) approved by the Minister; and (ii) published on the Department’s website; and (b) must be accompanied by any other information or documents required by the form. Determination that transferor’s financial security obligations are to cease (5) The Minister may determine that the transferor’s obligations in relation to the licence under sections 117 and 118 of the Act are to cease if the Minister is satisfied that the transferee has provided the Commonwealth with the financial security required by section 117 of the Act. (6) If the Minister makes a determination under subsection (5): (a) the transferor’s obligations in relation to the licence under sections 117 and 118 of the Act cease at the later of the following times: (i) when the Minister makes the determination; (ii) when the transfer of the licence takes effect; and (b) the Minister must give written notice of the determination to the transferor and the transferee.