15Declaration that section 14 does not apply

15 Declaration that section 14 does not apply

(1) The Reserve Bank may, by notifiable instrument, declare that section 14 does not apply to a close‑out netting contract if it is satisfied that systemic disruption in the financial system could result if a party to the contract went into external administration.

Note: This section is intended to allow the Reserve Bank to require an economically significant multilateral netting arrangement to meet the standards in Part 3 of this Act. It may be necessary to amend the rules governing the arrangement before it can be approved under that Part.

(2) A declaration under subsection (1): (a) may only relate to a contract entered into after the day the declaration is registered on the Federal Register of Legislation under the Legislation Act 2003; and (b) ceases to have effect at the end of 6 months after the day it is registered.