Banking Act 1959

Part II - Provisions relating to the carrying on of banking business  

Division 1A - Prudential supervision and monitoring of ADIs and authorised NOHCs  

Subdivision B - Conversion and write-off provisions  

SECTION 11CAA   11CAA   Definitions  


In this Subdivision:

clearing and settlement facility
has the meaning given by Division 6 of Part 7.1 of the Corporations Act 2001 .

conversion and write-off provisions
means the provisions of the prudential standards that relate to the conversion or writing off of:


(a) Additional Tier 1 and Tier 2 capital; or


(b) any other instrument.

conversion entity
: an entity (the first entity ) is a conversion entity for an instrument if:


(a) the instrument is issued by another entity, or another entity is a party to the instrument; and


(b) the instrument converts, in accordance with the terms of the instrument, into one or more ordinary shares or mutual equity interests of the first entity.

converts
: an instrument converts into one or more ordinary shares or mutual equity interests of an entity including by redeeming or cancelling the instrument or rights under the instrument, and replacing the instrument or rights with ordinary shares or mutual equity interests (as the case requires).

mutual equity interests
has the same meaning as in the prudential standards.

operating rules
has the meaning given by section 761A of the Corporations Act 2001 .

related subsidiary of an ADI
means a subsidiary of a holding company of the ADI.

specified law
means any of the following:


(a) the Financial Sector (Shareholdings) Act 1998 ;


(b) the Foreign Acquisitions and Takeovers Act 1975 ;


(c) Chapter 6 of the Corporations Act 2001 (takeovers);


(d) any other Australian law, or law of a foreign country or part of a foreign country, prescribed by the regulations for the purposes of this paragraph.




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