Commonwealth Numbered Acts

PAYMENT SYSTEMS AND NETTING ACT 1998 No. 83, 1998 - SECT 12

(a) systemic disruption in the financial system could result if a participant went into external administration and the arrangement were not approved under this section; and

(b) the arrangement provides for netting to occur at least once on each business day; and

(c) the rules governing the arrangement establish a coordinator for the arrangement; and

(d) the coordinator of the arrangement has the resources, competency and integrity needed to administer the arrangement; and

(e) the rules governing the arrangement provide that if a party to the arrangement goes into external administration:

(i) the party must notify the coordinator as soon as practicable; and

(ii) the coordinator may exclude the party from the arrangement; and

(f) the rules governing the arrangement require a party to the arrangement to notify the coordinator as soon as practicable if they have reasonable grounds to suspect that another party to the arrangement is insolvent;

(2) An approval:

(a) must be given in writing; and

(b) may be given subject to the terms and conditions specified in the approval.