Commonwealth Numbered Acts

FINANCIAL CORPORATIONS (TRANSFER OF ASSETS AND LIABILITIES) ACT 1993 No. 97 of 1993 - SECT 7

7.(1) This Act applies only as provided in this section.

(2) Subject to subsection (6), if:

   (a)  an eligible local bank is, and has been from and including 18 June
        1993, a subsidiary of a foreign corporation; and

   (b)  the foreign corporation is an eligible foreign bank; and

   (c)  the eligible local bank or one of its eligible subsidiaries (if any)
        is proposing to transfer, or transfers, an asset or liability to the
        foreign corporation; this Act applies in relation to the transfer.

(3) Subject to subsection (6), if:

   (a)  an eligible local bank is, and has been from and including 18 June
        1993,
a subsidiary of a foreign corporation ("parent corporation"); and

   (b)  the eligible local bank or one of its eligible subsidiaries (if any)
        is proposing to transfer, or transfers, an asset or liability to an
        eligible foreign bank that is a subsidiary of the parent corporation;
        this Act applies in relation to the transfer.

(4) Subject to subsection (6), if:

   (a)  an eligible money market corporation is, and has been from and
        including 18 June 1993, a subsidiary of a foreign corporation; and

   (b)  the foreign corporation is an eligible foreign bank; and

   (c)  the eligible money market corporation or one of its eligible
        subsidiaries (if any) is proposing to transfer, or transfers, an asset
        or liability to the foreign corporation; this Act applies in relation
        to the transfer.

(5) Subject to subsection (6), if:

   (a)  an eligible money market corporation is, and has been from and
        including 18 June 1993, a subsidiary of a foreign corporation; and

   (b)  the eligible money market corporation or one of its eligible
        subsidiaries (if any) is proposing to transfer, or transfers, an asset
        or liability to a newly established local bank that is a wholly-owned
        subsidiary (within the meaning of the Corporations law) of the foreign
        corporation; this Act applies in relation to the transfer.

(6) This Act applies in relation to the transfer of an asset or liability only
if:

   (a)  the Treasurer determines in writing that the transfer is reasonably
        required for the proper organisation of the activities in Australia of
        the transferring corporation and of the receiving corporation,
        following the grant of a banking authority to the receiving
        corporation; and

   (b)  within the prescribed period (see subsection (7)) in relation to the
        transfer, the transferring corporation gives notice in writing of the
        proposed transfer, identifying the asset or liability to be
        transferred, to:

        (i)    the Treasurer; and

        (ii)   if the law of a State or Territory requires that the transfer
               be registered-the person authorised under that law to register
               the transfer; and

   (c)  the transfer is effected within 6 years from the day on which this Act
        commences.

(7) For the purposes of paragraph (6)(b), the prescribed period in relation to
the transfer of an asset or liability is:

   (a)  if the receiving corporation was in possession of a banking authority
        on the day on which this Act commences-the period of 6 months from
        that day; or

   (b)  if paragraph (a) does not apply-the period of 6 months from the day on
        which the receiving corporation is granted a banking authority.