New South Wales Consolidated Acts

TRANSPORT ADMINISTRATION ACT 1988 - SECT 88M

88M Restrictions on dealings with land and rail infrastructure facilities and other rights

(1) ARTC must not sell or otherwise deal with land or rail infrastructure facilities subject to an ARTC lease or licence, or installed or established by ARTC in or on the NSW rail network for the purposes of an ARTC arrangement, in a way that affects, or is likely to affect, the linear continuity of railway lines affected by, or subject to, an ARTC arrangement.

(2) ARTC must not assign (other than by granting a security interest), or grant a mortgage over, all or any of its rights under an ARTC arrangement.

(3) ARTC may grant a security interest over all or any of its rights under an ARTC arrangement, but only if the granting of that interest complies with the following--

(a) it does not affect, or is not likely to affect, the linear continuity of railway lines affected by, or subject to, an ARTC arrangement,

(b) it does not materially interfere with or restrict, or is not likely to materially interfere with or restrict, the carrying out of rail operations by ARTC in accordance with an ARTC arrangement,

(c) it does not permit or potentially permit the assignment or other disposition of ARTC's obligations or rights under an ARTC arrangement by the holder of the security interest,

(d) it does not permit or potentially permit the exercise of a power of sale or foreclosure in respect of any land or rail infrastructure facilities subject to, or assets or rights under, an ARTC arrangement.

(4) A transaction entered into by ARTC is, to the extent that it contravenes this section, void.

(5) In this section, a reference to ARTC includes a reference to a successor of ARTC.

(6) This section does not apply to or in respect of any thing permitted to be sold to ARTC under section 88E.

(7) In this section--

"security interest" means any pledge, lien, charge or preferential interest or arrangement, but does not include a mortgage.