Commonwealth Consolidated Acts Commonwealth Consolidated ActsStay on exercising termination rights
(1) Subject to subsections (2) and (4), a right to terminate:
(a) an arrangement; or
(b) an obligation under an arrangement;
that arises:
(c) by express provision (however described) of an arrangement; or
(d) because of anything done in accordance with a direction given under section 823F;
cannot be exercised if a body corporate to which this Subdivision applies is a party to the arrangement.
Rights not subject to the stay
(2) Subsection (1) does not apply to the right if it is:
(a) a right that is exercisable only in particular circumstances (other than circumstances relating to the manner in which the right is exercised, such as a requirement relating to giving notice about exercising the right); or
(b) a right:
(i) under an arrangement entered into after this Subdivision begins to apply to the body corporate; or
(ii) that arises because of anything done in accordance with a direction given, after this Subdivision begins to apply to the body corporate, under section 823F; or
(c) a right contained in a kind of arrangement:
(i) prescribed by the regulations for the purposes of this subparagraph; or
(ii) declared under paragraph (3)(a) of this section; or
(i) prescribed by the regulations for the purposes of this subparagraph; or
(ii) declared under paragraph (3)(b); or
(e) a right of a kind declared under paragraph (3)(c), and the circumstances specified in that declaration exist.
(3) For the purposes of subsection (2), the Minister may, by legislative instrument:
(a) declare kinds of arrangements referred to in a specified law of the Commonwealth; or
(b) declare kinds of rights to which subsection (1) does not apply; or
(c) declare kinds of rights to which subsection (1) does not apply in specified circumstances.
(4) Subsection (1) does not apply to the exercise of a right if, before the exercise of the right:
(a) the Reserve Bank; or
(b) if a liquidator of the body corporate is appointed after this Subdivision ceases to apply to the body corporate--the liquidator;
consents in writing to the exercise of the right.