Payment Systems and Netting Act 1998

This section applies in relation to a close‑out netting contract if:

a party to the contract is:

a regulated body; or

a related body corporate of a regulated body; and

an obligation under the contract of a party to the contract is an eligible obligation in relation to the contract or is of another prescribed kind; and

a specified stay provision (other than a direction stay provision) applies to a trigger event that happens in relation to the contract.

This section also applies in relation to a security given over financial property, in respect of an obligation of a party to a close‑out netting contract, if:

a party to the contract is:

a regulated body; or

a related body corporate of a regulated body; and

the obligation is an eligible obligation in relation to the contract, or an obligation of a prescribed kind; and

a specified stay provision (other than a direction stay provision) applies to a trigger event that happens in relation to the contract.

A specified stay provision (other than a direction stay provision) ceases to apply to a close‑out netting contract or a security:

at the time when a declaration under section 15B in relation to the contract or security takes effect; or

at the end of the resolution period for the trigger event, if no declaration under section 15C in relation to the contract or security is made during that period.

The resolution period for a trigger event is the period starting when the trigger event happens and ending:

at midnight (by legal time in the Australian Capital Territory) at the end of the first business day after the day on which the trigger event happens, unless the specified stay provision is subsection 36AA(2) of the Business Transfer Act; or

for subsection 36AA(2) of the Business Transfer Act:

if APRA makes a declaration under subsection (5)—at the time the declaration is made; or

if a certificate of transfer under that Act comes into force—just after the certificate of transfer comes into force.

Subsection 36AA(2) of the Business Transfer Act applies indefinitely if neither subparagraph (b)(i) nor (b)(ii) ends the resolution period.

If:

a trigger event happens to which subsection 36AA(2) of the Business Transfer Act applies; and

the trigger event is the fact that an act is done for the purposes of Division 2 or 3 of Part 4 of that Act; and

APRA is satisfied that APRA will not issue a certificate of transfer under that Act;

A declaration under subsection (5) is not a legislative instrument.