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310C: Calculation of netted balance
or “How to calculate the final amount owed in a netting agreement when a company is liquidated”
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“Bilateral agreements require transactions to be between the same parties”

When you have a bilateral netting agreement, Sections 310A to 310O only apply if the transactions in the agreement are mutual. This means the transactions must be mutual credits, mutual debts, or other mutual dealings between the parties involved.

To figure out if transactions are mutual, there’s a special rule about trustees. If you’re a trustee and you take on a debt or liability, it’s considered to be in the same role as the property you’re managing. This only applies if you’re allowed to take on that debt or liability as part of your job as a trustee.

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Next up: 310E: When mutuality required for transactions under recognised multilateral netting agreements

or “Rules for transactions in multilateral agreements, with exceptions for certain trust situations”
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Part 16 Liquidations
Creditors' claims

310DMutuality required for transactions under bilateral netting agreements

  1. Sections 310A to 310O 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 310D: inserted, on , by section 15 of the Companies Amendment Act 1999 (1999 No 19).
  • Section 310D(2): inserted, on , by section 31 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).
  • Section 310D(3): inserted, on , by section 31 of the Regulatory Systems (Commercial Matters) Amendment Act 2017 (2017 No 12).