101Direction not grounds for denial of obligations

#### 101 Direction not grounds for denial of obligations (1) This section applies if a private health insurer is party to a contract, whether the proper law of the contract is Australian law (including the law of a State or Territory) or law of a foreign country (including the law of part of a foreign country). (2) The fact that the private health insurer is subject to a direction by APRA under section 96 does not allow the contract, or a party to the contract, other than the insurer, to do any of the following: (a) deny any obligations under that contract; (b) accelerate any debt under that contract; (c) close out any transaction relating to that contract; (d) enforce any security under that contract. This subsection has effect subject to subsections (3) and (4). (3) If the private health insurer is prevented from fulfilling its obligations under the contract because of a direction under section 96, other than a direction of a kind referred to in paragraph 97(1)(l), the other party or parties to the contract are, subject to any orders made under subsection (4) of this section, relieved from obligations owed to the insurer under the contract. (4) A party to a contract to which subsection (3) applies may apply to the Federal Court for an order relating to the effect on the contract of a direction under section 96\. The order may deal with matters including (but not limited to) the following: (a) requiring a party to the contract to fulfil an obligation under the contract despite subsection (3); (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 96.