Financial Sector (Transfer and Restructure) Act 1999

PART 4 - COMPULSORY TRANSFERS  

Division 4 - Effect of compulsory transfer on contracts  

SECTION 36AA   COMPULSORY TRANSFER NOT GROUND FOR DENIAL OF OBLIGATIONS  

36AA(1)    
This section applies if a body corporate covered by subsection (2) is or was party to a contract, whether the proper law of the contract is:

(a) Australian law (including the law of a State or Territory); or

(b) law of a foreign country (including the law of part of a foreign country).

36AA(2)    
This subsection covers the following:

(a) a body corporate that is, or is proposed to become, a transferring body;

(b) a body corporate that is a member of a relevant group of bodies corporate, if another member of that group is, or is proposed to become, a transferring body.

36AA(3)    
None of the matters mentioned in subsection (4) allows the contract, or a party to the contract (other than the body corporate), to do any of the following:

(a) deny any obligations under the contract;

(b) accelerate any debt under the contract;

(c) close out any transaction relating to the contract;

(d) enforce any security under the contract.

36AA(4)    
The matters are as follows:

(a) an act being done for the purposes of Division 2 or 3 , or a certificate of transfer coming into force under Division 3, in connection with the body corporate;

(b) if the body corporate is a member of a relevant group of bodies corporate - an act being done for the purposes of Division 2 or 3 , or a certificate of transfer coming into force under Division 3, in connection with another member of the group.