(1) The Court may order that one or more rights under a contract, agreement or arrangement are enforceable against a body only:
(a) with the leave of the Court; and
(b) in accordance with such terms (if any) as the Court imposes.
Example: The order could be sought for a right to terminate for convenience.
(2) The Court may make the order (the stay order ) if:
(a) the body is the subject of any of the following:
(i) an announcement referred to in paragraph 415D(1)(a);
(ii) an application under section 411 (the section 411 application );
(iii) a compromise or arrangement approved under this Part as a result of a section 411 application; and
(b) the Court is satisfied that:
(i) the rights are being exercised; or
(ii) the rights are likely to be exercised; or
(iii) there is a threat to exercise the rights;
because of one or more reasons referred to in paragraphs 415D(1)(a) to (f); and
(c) an application for the stay order is:
(i) if the body has made an announcement referred to in paragraph 415D(1)(a), but not yet a section 411 application--made by the body; or
(ii) if the body has made a section 411 application, but a resulting compromise or arrangement is yet to be approved under this Part--included in the section 411 application; or
(iii) if a compromise or arrangement has been approved under this Part as a result of the section 411 application--made by the person appointed to administer the compromise or arrangement; and
(d) in a case where the body has made a section 411 application--the section 411 application states it is being made for the purpose of the body avoiding being wound up in insolvency.
(3) A stay order must specify the period for which it applies. In working out the period, the Court must have regard to:
(a) subsections 415D(2), (3) and (4); and
(b) the interests of justice.
(4) Subsection (1) does not apply to a right referred to in subsection 415D(6) or (8).
(5) Before deciding an application for a stay order, the Court may grant an interim order for one or more rights under a contract, agreement or arrangement not to be enforced against a body.
(6) The Court must not require an applicant for a stay order to give an undertaking as to damages as a condition of granting an interim order.