South Australian Consolidated Acts South Australian Consolidated Acts (1) Without limiting
sections 7 and 8, the following provisions have effect in relation to the
banking business of Challenge—
(a) the
relationship between Challenge and a customer or depositor of that bank is, on
and after the commencement time, between Westpac and that customer or
depositor, and gives rise to the same rights and the same duties (including
rights of set-off) as would have existed before that time if that relationship
had been between Westpac and the customer or depositor, and so that any
instruction, order, direction, mandate or authority given by that customer or
depositor to Challenge and subsisting on or given after the commencement time
is, unless and until revoked or cancelled, deemed to have been given to
Westpac;
(b) any
security held by Challenge as security for the payment of the debts or
liabilities (whether present or future, certain or contingent) of any person
is by virtue of this Act transferred to Westpac at the commencement time, and
is to be held by and be available to Westpac as security for the payment of
those debts and liabilities to Westpac (but not, by reason only of this Act,
as security for any debt or liability of that person to Westpac existing
immediately before that time) and, where the security extends to future
advances to, or to future liabilities of, that person, the security shall,
after that time, subject to any agreement between Westpac and that person, be
held by and be available to Westpac as security for future advances to that
person by, and future liabilities of that person to, Westpac, to the same
extent to which future advances by, or liabilities to, Challenge were secured
immediately before that time;
(c)
Westpac is, in relation to any security transferred under this Act and the
money secured by the security, entitled to the same rights and priorities and
subject to the same liabilities as Challenge would have been entitled and
subject to, if the security had continued to be held by Challenge;
(d) the
custody of any document, goods or thing held by Challenge as bailee for any
other person at any office or branch or agency of Challenge is by virtue of
this Act transferred to Westpac at the commencement time, and the rights,
duties and liabilities of Challenge under any contract of bailment relating to
the document, goods or thing are transferred at that time to Westpac;
(e) any
negotiable instrument or order for the payment of money, whether drawn, given,
accepted or endorsed before, on or after the commencement time, which is
expressed to be drawn by, drawn on, or given to, or accepted or endorsed by
Challenge, or payable at any place of business of Challenge, has the same
effect after the commencement time as if it had been drawn by, drawn on, or
given to, or accepted or endorsed by, Westpac, or payable at the same place of
business of Westpac;
(f) any
information held immediately before the commencement time by Challenge
relating to a customer or depositor of that bank is available to and may be
used by Westpac on and after the commencement time.
(2) Despite
subsection (1) and sections 7 and 8—
(a)
Westpac is, in relation to any security held by it over any money on deposit
with Challenge immediately before the commencement time, entitled to the same
rights and priorities and subject to the same liabilities as it would have
been had the money on deposit continued to be held by Challenge; and
(b)
Westpac is, in relation to any security held by Challenge immediately before
the commencement time over money on deposit with Westpac, entitled to the same
rights and priorities and subject to the same liabilities as Challenge would
have been had the security continued to be held by Challenge.