Commonwealth Consolidated Regulations

PAYMENT SYSTEMS AND NETTING REGULATIONS 2001 - REG 6

Obligations that may be eligible obligations

  (1)   An obligation that relates to an arrangement that is a forward, swap or option, or any combination of those things, in relation to one or more commodities, is prescribed for the purposes of paragraph   14A(8)(a) of the Act.

Obligations that are not eligible obligations

  (2)   None of the following are eligible obligations in relation to a close - out netting contract:

  (a)   an obligation under a credit facility (as defined in regulations made for the purposes of subparagraph   765A(1)(h)(i) of the Corporations Act 2001 ), including:

  (i)   a margin lending facility (within the meaning of the Corporations Act 2001 ); and

  (ii)   an obligation under a financial product that is declared by the Australian Securities and Investments Commission under subsection   761EA(9) of the Corporations Act 2001 not to be a margin lending facility;

  (b)   an obligation under a deposit - taking facility;

  (c)   an obligation under a reciprocal purchase agreement (otherwise known as a repurchase agreement), a sell - buyback arrangement or securities loan arrangement;

  (d)   an obligation under a contract of insurance, including a life policy or a sinking fund policy within the meaning of the Life Insurance Act 1995 ;

  (e)   an obligation under a managed investment scheme (within the meaning of the Corporations Act 2001 );

  (f)   an obligation under a lease or licence;

  (g)   an obligation under a guarantee;

  (h)   an obligation to pay money under:

  (i)   a cheque; or

  (ii)   an order for the payment of money; or

  (iii)   a bill of exchange.

Authority for subregulation   (2)

  (3)   Subregulation (2) is made under subsection   14A(9) of the Act.