Financial Sector (Transfer and Restructure) Act 1999

PART 4 - COMPULSORY TRANSFERS  

Division 2 - Compulsory transfer determinations  

SECTION 28   COMPLEMENTARY STATE OR TERRITORY LEGISLATION  

28(1)    
State or Territory legislation referred to in paragraph 25(2)(f) , as that paragraph applies in relation to a compulsory transfer of business, must include provision to ensure that, when a certificate of transfer comes into force under Division 3 , the receiving body is taken to be the successor in law to the transferring body, to the extent of the transfer. In particular, the legislation must provide that:

(a) assets of the transferring body vest in the receiving body, to the extent of the transfer; and

(b) liabilities of the transferring body become liabilities of the receiving body, to the extent of the transfer; and

(c) the duties, obligations, immunities, rights and privileges applying to the transferring body apply to the receiving body, to the extent of the transfer; and

(d) if the certificate of transfer includes provisions of a kind referred to in subsection 33(3) specifying:

(i) that particular things are to happen or are taken to be the case - those things are taken to happen, or to be the case, in accordance with those provisions; or

(ii) a mechanism for determining things that are to happen or are taken to be the case - things determined in accordance with that mechanism are taken to happen, or to be the case, as determined in accordance with that mechanism; and

(e) if there is an approved section 30 statement in relation to the transfer that specifies:

(i) that particular things are to happen or are taken to be the case - those things are taken to happen, or to be the case, in accordance with the statement; or

(ii) a mechanism for determining things that are to happen or are taken to be the case - things determined in accordance with that mechanism are taken to happen, or to be the case, as determined in accordance with that mechanism.

28(2)    
To avoid doubt, this section is enacted only for the purposes of paragraph 25(2)(f) .

Note:

Under that paragraph, in order to make a determination under section 25 where both the transferring body and the receiving body are established in a State or Territory, APRA needs to consider whether legislation satisfying the requirements of this section has been enacted. However, APRA is not prevented from making such a determination if such legislation has not been enacted (see subsection 25(2A) ).