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310D: Mutuality required for transactions under bilateral netting agreements
or “Bilateral agreements require transactions to be between the same parties”
You could also call this:

“Rules for transactions in multilateral agreements, with exceptions for certain trust situations”

Sections 310A to 310O apply to transactions that are part of a recognised multilateral netting agreement. This is true even if these transactions are not mutual credits, mutual debts, or other mutual dealings.

However, there are some cases where these sections don’t apply. This happens when three things are all true:

  1. The transactions are not mutual credits, mutual debts, or other mutual dealings.
  2. One of the people involved in the transactions is acting as a trustee for someone else.
  3. The person acting as a trustee is not allowed by the trust rules to be part of the transaction.

In these cases, even if the transactions are part of a recognised multilateral netting agreement, sections 310A to 310O won’t apply to them.

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Next up: 310F: Application of set-off under section 310 to transactions subject to netting agreements

or “Rules for settling accounts with a company in liquidation when you have a netting agreement”
Next

Part 16 Liquidations
Creditors' claims

310EWhen mutuality required for transactions under recognised multilateral netting agreements

  1. Sections 310A to 310O apply to transactions that are subject to a recognised multilateral netting agreement, whether or not those transactions constitute mutual credits, mutual debts, or other mutual dealings.

  2. Despite subsection (1), sections 310A to 310O do not apply to transactions that are subject to a recognised multilateral netting agreement if—

  3. those transactions do not constitute mutual credits, mutual debts, or other mutual dealings; and
    1. a party to any of those transactions is acting as a trustee for another person; and
      1. the party acting as trustee is not authorised by the terms of the trust of which the party is a trustee to enter into the transaction.

        Notes
        • Section 310E: inserted, on , by section 15 of the Companies Amendment Act 1999 (1999 No 19).