Banking Act 1959

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

Division 2 - Protection of depositors  

Subdivision B - Provisions dealing with control of a body corporate ' s business by a Banking Act statutory manager  

SECTION 15B   Moratorium - effect of Banking Act statutory management on court and tribunal proceedings  

(1)  
A person cannot begin or continue a proceeding in a court or tribunal covered by subsection (8) in respect of a body corporate if a Banking Act statutory manager is in control of the body corporate ' s business.

(2)  
Subsection (1) does not apply if:


(a) the court or tribunal grants leave for the proceedings to be begun or continued on the ground that the person would be caused hardship if leave were not granted; and


(b) the beginning or continuing of the proceedings is in accordance with such terms (if any) as the court or tribunal imposes.

(3)  
A person intending to apply for leave of the court or tribunal under paragraph (2)(a) must give APRA at least 10 days notice of the intention to apply (or a shorter period, if the court or tribunal considers that exceptional circumstances make this necessary).

(4)  
APRA may apply to the court or tribunal to be joined as a party to the proceedings for leave. If APRA is joined as a party, the court or tribunal must have regard to APRA ' s views in deciding:


(a) whether to grant leave under paragraph (2)(a); and


(b) if the court or tribunal decides to grant the leave - whether to impose terms as mentioned in paragraph (2)(b); and


(c) if the court or tribunal decides to impose such terms - the nature of those terms.

(5)  
Subsection (1) also does not apply if:


(a) APRA consents in writing to the proceedings beginning or continuing; or


(b) the Banking Act statutory manager, after considering APRA ' s views, consents to the proceedings beginning or continuing.

(6)  
APRA (or the Banking Act statutory manager) cannot revoke a consent given for the purposes of subsection (5).

(7)  
Neither APRA nor the Banking Act statutory manager is liable to an action or other proceedings for damages in respect of a refusal to give consent under subsection (5).

(8)  
A proceeding in a court or tribunal is covered by this subsection in respect of a body corporate if it is any of the following:


(a) a proceeding against the body corporate (including a cross-claim or third party claim against the body corporate);


(b) a proceeding in relation to property of the body corporate;


(c) a proceeding to enforce any security (including a mortgage or charge) granted by the body corporate, or by a related body corporate of the body corporate, over any property that the body corporate owns, uses, possesses, occupies or in which the body corporate otherwise has an interest.

(9)  
Subsection (8) does not cover a proceeding in respect of an offence or a contravention of a provision of a law for which a pecuniary penalty (however described) may be imposed.

(10)  
In this section, a reference to a tribunal includes a reference to the following:


(a) an industrial tribunal;


(b) an arbitral tribunal.


 

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