Commonwealth Consolidated Acts

LIFE INSURANCE ACT 1995 - SECT 230AAD

  (1)   This section applies if an entity (the first entity ) 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 first entity), 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)   a relevant instrument being converted in accordance with the terms of the instrument;

  (b)   a relevant instrument being written off in accordance with the terms of the instrument;

  (c)   the making of a determination (however described) by APRA that results in a relevant instrument being required to be converted or written off in accordance with the terms of the instrument.

  (4)   In this section:

"relevant instrument" means:

  (a)   an instrument to which section   230AAC applies:

  (i)   that is issued by the first entity; or

  (ii)   to which the first entity is a party; or

  (iii)   for which the first entity is a conversion entity; or

  (b)   if the first entity is a body corporate that is a member of a relevant group of bodies corporate--an instrument to which section   230AAC applies:

  (i)   that is issued by another member of the group; or

  (ii)   to which another member of the group is a party; or

  (iii)   for which another member of the group is a conversion entity.