Payment Systems and Netting Act 1998

The Reserve Bank may approve the arrangement if it is satisfied that:

systemic disruption in the financial system could result if a participant went into external administration and the arrangement were not approved under this section; and

the arrangement provides for netting to occur at least once on each business day; and

the rules governing the arrangement establish a coordinator for the arrangement; and

the coordinator of the arrangement has the resources, competency and integrity needed to administer the arrangement; and

the rules governing the arrangement provide that if a party to the arrangement goes into external administration:

the party must notify the coordinator as soon as practicable; and

the coordinator may exclude the party from the arrangement; and

the rules governing the arrangement require a party to the arrangement to notify the coordinator as soon as practicable if they have reasonable grounds to suspect that another party to the arrangement is insolvent;

An approval:

must be given in writing; and

may be given subject to the terms and conditions specified in the approval.