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CORPORATIONS ACT 2001 No. 50, 2001 - SECT 970B
Effect of set-off on claim
(1) If:
- (a)
- SEGC allows a claim by a person (in this section called the
claimant ) in respect of a liability of another person (in this section called
the defaulter ); and
- (b)
- the liability of the defaulter to the claimant has been reduced, by an
amount of money or a number of securities (in this section called the set-off
reduction ), because of:
- (i)
- the exercise by the claimant or the defaulter of a right of set-off,
whether under an agreement or otherwise; or
- (ii)
- the operation of an agreement so far as it provides for the automatic
set-off of liabilities; and
- (c)
- but for this section, the reduction of the defaulter's liability would not
be taken into account when working out the obligations of SEGC in respect of
the claim;
this section applies for the purposes of working out those obligations.
(2) If:
- (a)
- SEGC is required to satisfy the claim by paying an amount; and
- (b)
- the set-off reduction consists of an amount;
the amount SEGC must pay in respect of the claim is reduced by the amount of
the set-off reduction.
(3) If:
- (a)
- SEGC is required to satisfy the claim by paying an amount; and
- (b)
- the set-off reduction consists of a number of securities;
then:
- (c)
- the Board must work out the value of the securities; and
- (d)
- the amount SEGC must pay in respect of the claim is reduced by the value
worked out under paragraph (c).
(4) If:
- (a)
- SEGC is required to satisfy the claim by transferring securities
of a particular kind; and
- (b)
- the set-off reduction consists of a number of securities of that kind;
the number of securities that SEGC must transfer in respect of the claim is
reduced by the number referred to in paragraph (b).
(5) If:
- (a)
- SEGC is required to satisfy the claim by transferring securities
of a particular kind; and
- (b)
- the set-off reduction consists of a number of securities that are not of
that kind;
then:
- (c)
- the Board must work out:
- (i)
- the value of the securities that constitute the set-off reduction; and
- (ii)
- the number of securities of the kind referred to in paragraph (a)
that are equal in value to the value worked out under subparagraph (i);
and
- (d)
- the number of securities that SEGC is required to transfer in respect of
the claim is reduced by the number worked out under subparagraph (c)(ii).
(6) If:
- (a)
- SEGC is required to satisfy the claim by transferring securities
of a particular kind; and
- (b)
- the set-off reduction consists of an amount of money;
then:
- (c)
- the Board must work out the number of securities of that kind that are
equal in value to that amount; and
- (d)
- the number of securities that SEGC must transfer in respect of the claim
is reduced by the number worked out under paragraph (c).
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