Commonwealth Consolidated Acts

PAYMENT SYSTEMS AND NETTING ACT 1998 - SECT 15

             (1)  The Reserve Bank may declare in writing that section 14 does not apply to a close‑out netting contract if it is satisfied that systemic disruption in the financial system could result if a party to the contract went into external administration.

Note:          This section is intended to allow the Reserve Bank to require an economically significant multilateral netting arrangement to meet the standards in Part 3 of this Act. It may be necessary to amend the rules governing the arrangement before it can be approved under that Part.

             (2)  A declaration under subsection (1):

                     (a)  may only relate to a contract entered into after the declaration is made; and

                     (b)  is to be made by notice published in the Gazette ; and

                     (c)  ceases to have effect 6 months after it is made.