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.

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History

S 36AA substituted by No 10 of 2018, s 3 and Sch 4 item 78, effective 5 March 2018. S 36AA formerly read:

SECTION 36AA COMPULSORY TRANSFER NOT GROUND FOR DENYING OBLIGATION
36AA(1)
This section applies if a body corporate that is, or is proposed to become, a transferring body is or was party to a contract, whether the proper law of the contract is Australian law (including the law of a State or Territory) or law of a foreign country (including the law of part of a foreign country).

36AA(2)
The fact that an act is done for the purposes of Division 2 or 3, or that a certificate of transfer comes into force under Division 3, in connection with the body does not allow the contract, or any other party to the contract, to do any of the following:

(a) deny any obligations under that contract;

(b) accelerate any debt under that contract;

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

(d) enforce any security under that contract.
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History

S 36AA(2) amended by No 43 of 2016, s 3 and Sch 1 item 41, by inserting para (d), effective 1 June 2016 and applicable in relation to the enforcement of a security after the start time, even if the security was given before the start time.

S 36AA inserted by No 105 of 2008, s 3 and Sch 5 item 14, applicable in relation to contracts made after 18 October 2008.

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