Commonwealth Numbered Acts Commonwealth Numbered ActsGeneral principle
(1) A transaction entered into in contravention of section 28 is of no effect unless:
(a) the Federal Court makes an order under subsection (2); or
(b) it is included in a class of transactions specified in APRA rules, made for the purpose of this paragraph, to be transactions to which this section applies, and the Court has not made an order under subsection (6).
Order declaring the transaction to be effective
(2) The Federal Court, on application by a party to the transaction, may make an order declaring that the transaction is effective, and is to be taken always to have been effective, for all purposes.
(3) The Federal Court must not make an order under subsection (2) unless it is satisfied that the applicant entered into the transaction in good faith and without knowledge of the contravention.
(4) In deciding whether to make an order under subsection (2), the Federal Court may have regard to any hardship that would be caused to the applicant if the order were not made.
(5) Subsection (4) is not intended to limit the matters to which the Federal Court may have regard on an application under subsection (2).
Order declaring the transaction to be of no effect
(6) The Federal Court, on application by APRA, may make an order declaring that a particular transaction that:
(a) was entered into in contravention of section 28; and
(b) is included in a class of transactions of a kind referred to in paragraph (1)(b) of this section;
is, and is to be taken always to have been, of no effect for any purpose.
(7) The Federal Court must not make an order under subsection (6) if it is satisfied that the effect of the order (if made) would be to cause hardship to a person who entered into the transaction in good faith and without knowledge of the contravention.