Banking Act 1959

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

Division 2 - Protection of depositors  

Subdivision AA - Recapitalisation directions by APRA  

SECTION 13N   Recapitalisation direction not grounds for denial of obligations  

(1)  


This section applies if a body corporate is 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).

(2)  


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


(a) deny any obligation 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.

(3)  


The matters are as follows:


(a) the body corporate being subject to a recapitalisation direction;


(b) if the body corporate is a member of a relevant group of bodies corporate - another member of the group being subject to a recapitalisation direction.




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