INSURANCE ACT 1973 - SECT 103K Recapitalisation direction not grounds for denial of obligations

INSURANCE ACT 1973 - SECT 103K

  (1)   This section applies if a body corporate is party to a contract, whether the proper law of the contract is:

  (a)   Australian law (including the law of a State or Territory); or

  (b)   law of a foreign country (including the law of part of a foreign country).

  (2)   None of the matters mentioned in subsection   (3) allows the contract, or a party to the contract (other than the body corporate), to do any of the following:

  (a)   deny any obligations under the contract;

  (b)   accelerate any debt under the contract;

  (c)   close out any transaction relating to the contract;

  (d)   enforce any security under the contract.

  (3)   The matters are as follows:

  (a)   the body corporate being subject to a recapitalisation direction;

  (b)   if the body corporate is a member of a relevant group of bodies corporate--another member of the group being subject to a recapitalisation direction.