Exercise of Reserve Bank powers to give directions under section 823F not grounds for denial of obligations
(1) This section applies if a body corporate is party to an agreement, whether the proper law of the agreement is: (a) Australian law; or (b) foreign law, including the law of part of a foreign country. (2) None of the matters mentioned in subsection (3) allows the agreement, or a party to the agreement (other than the body corporate), to do any of the following: (a) deny any obligation under the agreement; (b) accelerate any debt under the agreement; (c) terminate or close out the agreement, or any transaction relating to the agreement; (d) enforce any security under the agreement. (3) The matters are as follows: (a) the body corporate being subject to the exercise of a power under section 823F by the Reserve Bank; (b) if the body corporate is a member of a group of bodies corporate—another member of the group being subject to the exercise of such a power. Payment Systems and Netting Act 1998 prevails over this section (4) If there is any inconsistency between: (a) subsections (1) to (3) of this section; and (b) the Payment Systems and Netting Act 1998; that Act prevails to the extent of the inconsistency. Agreements to which this section does not apply (5) This section does not apply to a kind of agreement prescribed by the regulations for the purposes of this subsection.
Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.
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