Stay on exercising termination rights
Stay on exercising termination rights (1) Subject to subsections (2) and (4), a right to terminate: (a) an arrangement; or (b) an obligation under an arrangement; that arises: (c) by express provision (however described) of an arrangement; or (d) because of anything done in accordance with a direction given under section 823F; cannot be exercised if a body corporate to which this Subdivision applies is a party to the arrangement. Rights not subject to the stay (2) Subsection (1) does not apply to the right if it is: (a) a right that is exercisable only in particular circumstances (other than circumstances relating to the manner in which the right is exercised, such as a requirement relating to giving notice about exercising the right); or (b) a right: (i) under an arrangement entered into after this Subdivision begins to apply to the body corporate; or (ii) that arises because of anything done in accordance with a direction given, after this Subdivision begins to apply to the body corporate, under section 823F; or (c) a right contained in a kind of arrangement: (i) prescribed by the regulations for the purposes of this subparagraph; or (ii) declared under paragraph (3)(a) of this section; or (d) a right of a kind: (i) prescribed by the regulations for the purposes of this subparagraph; or (ii) declared under paragraph (3)(b); or (e) a right of a kind declared under paragraph (3)(c), and the circumstances specified in that declaration exist. (3) For the purposes of subsection (2), the Minister may, by legislative instrument: (a) declare kinds of arrangements referred to in a specified law of the Commonwealth; or (b) declare kinds of rights to which subsection (1) does not apply; or (c) declare kinds of rights to which subsection (1) does not apply in specified circumstances. (4) Subsection (1) does not apply to the exercise of a right if, before the exercise of the right: (a) the Reserve Bank; or (b) if a liquidator of the body corporate is appointed after this Subdivision ceases to apply to the body corporate—the liquidator; consents in writing to the exercise of the right.
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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