Commonwealth Consolidated Acts

PAYMENT SYSTEMS AND NETTING ACT 1998 - SECT 12

             (1)  The Reserve Bank may approve the arrangement if it is satisfied that:

                     (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;

and of any other matters specified in the regulations.

             (2)  An approval:

                     (a)  must be given in writing; and

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