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Companies Act 1993

Voluntary administration - Set-off and netting agreements

239AEJ: Mutuality required for transactions under bilateral netting agreements

You could also call this:

“Transactions in bilateral agreements must involve mutual exchanges between parties”

The rules in Sections 239AEI to 239AEP only apply to transactions under a bilateral netting agreement if those transactions are mutual. This means they must be mutual credits, mutual debts, or other mutual dealings between the parties involved.

When figuring out if transactions are mutual, there’s a special rule about trustees. If you’re a trustee and you take on a debt or other responsibility while managing trust property, it’s treated as if you took on that debt in your role as a trustee. This only applies if the trust allows you to take on such debts or responsibilities.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM321651.

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Part 15A Voluntary administration
Set-off and netting agreements

239AEJMutuality required for transactions under bilateral netting agreements

  1. Sections 239AEI to 239AEP apply to transactions that are subject to a bilateral netting agreement only if those transactions constitute mutual credits, mutual debts, or other mutual dealings.

  2. Subsection (3) applies for the purpose of determining under this section whether there are mutual credits, mutual debts, or other mutual dealings.

  3. A debt or other liability incurred by a person (T) who holds property as a trustee is to be regarded as incurred by T in the same capacity as that in which T holds the property, if T incurs, and is authorised by the terms of the trust to incur, the debt or other liability acting as the trustee.

Notes
  • Section 239AEJ: inserted, on , by section 6 of the Companies Amendment Act 2006 (2006 No 56).
  • Section 239AEJ(2): inserted, on , by section 30 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
  • Section 239AEJ(3): inserted, on , by section 30 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).