Insurance Act 1973

This section applies if an entity (the first entity) is 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).

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

deny any obligation under the contract;

accelerate any debt under the contract;

close out any transaction relating to the contract;

enforce any security under the contract.

The matters are as follows:

a relevant instrument being converted in accordance with the terms of the instrument;

a relevant instrument being written off in accordance with the terms of the instrument;

the making of a determination (however described) by APRA that results in a relevant instrument being required to be converted or written off in accordance with the terms of the instrument.

In this section:

an instrument to which section 36B applies:

that is issued by the first entity; or

to which the first entity is a party; or

for which the first entity is a conversion entity; or

if the first entity is a body corporate that is a member of a relevant group of bodies corporate—an instrument to which section 36B applies:

that is issued by another member of the group; or

to which another member of the group is a party; or

for which another member of the group is a conversion entity.