Section 849BB — Corporations Act 2001: Stay on exercising termination rights

Stay 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 (d) a right of a kind: (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.