Commonwealth Consolidated Acts

BANKING ACT 1959 - SECT 13N

             (1)  This section applies if a body corporate is party to a contract, whether the proper law of the contract is:

                     (a)  Australian law (including the law of a State or Territory); or

                     (b)  law of a foreign country (including the law of part of a foreign country).

             (2)  None of the matters mentioned in subsection (3) allows the contract, or a party to the contract (other than the body corporate), to do any of the following:

                     (a)  deny any obligation under the contract;

                     (b)  accelerate any debt under the contract;

                     (c)  close out any transaction relating to the contract;

                     (d)  enforce any security under the contract.

             (3)  The matters are as follows:

                     (a)  the body corporate being subject to a recapitalisation direction;

                     (b)  if the body corporate is a member of a relevant group of bodies corporate--another member of the group being subject to a recapitalisation direction.