Payment Systems and Netting Act 1998

Subsection (2) applies if:

a trigger event to which a specified stay provision (other than a direction stay provision) applies happens in relation to a close‑out netting contract; and

a party to the contract is:

a regulated body; or

a related body corporate of a regulated body; and

APRA is satisfied that APRA will not make a declaration under section 15C in relation to the party before the end of the resolution period for the trigger event.

APRA may, before the end of the resolution period for the trigger event, declare that the specified stay provision is to cease to apply to:

all close‑out netting contracts of the party; and

all securities given over financial property, in respect of obligations of the party under all close‑out netting contracts of the party.

A declaration under subsection (2) takes effect:

if the declaration specifies a time before the end of the resolution period when the specified stay provision is to cease to apply—at the specified time; or

in any other case—at the time when the declaration is made.

A declaration under subsection (2) cannot be varied or revoked.

If a declaration under subsection (2) is in writing, the declaration is not a legislative instrument.

The regulations may do any of the following:

prescribe requirements relating to how declarations under subsection (2) are to be made (including requirements relating to the content or form of declarations);

prescribe requirements relating to the notification or publication of declarations under subsection (2);

include provisions that apply to determining, either generally or for a particular purpose, the time when declarations under subsection (2) are taken to be made.

Regulations under paragraph (c) may (for example) provide that, for the purpose of this section, a declaration is taken not to have been made until certain requirements of regulations under paragraph (b) have been complied with.