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Companies Act 1993

Liquidations - Creditors' claims

310I: Set-off under netting agreement not affected by notice under section 294

You could also call this:

“Netting agreements remain valid despite transaction notices”

If someone files a notice about a transaction under section 294, it doesn’t change how section 310C works for that transaction if it’s part of a netting agreement. Section 310C keeps applying to the transaction until it’s set aside under section 294(3) or 294(4).

A netting agreement is a special kind of contract that banks and other financial companies use. It helps them manage their risks when they do business with each other.

When a transaction is “set aside,” it means that it’s cancelled or undone because there’s a problem with it. This might happen if the transaction wasn’t fair or if it broke some rules.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM322384.

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Part 16 Liquidations
Creditors' claims

310ISet-off under netting agreement not affected by notice under section 294

  1. The filing of a notice under section 294 in respect of any transaction that is subject to a netting agreement does not affect the operation of section 310C in respect of the transaction, and that section continues to apply to the transaction until the transaction is set aside under subsection (3) or subsection (4) of section 294.

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