§ 85 — Effects of bail-in certificate

85.—(1) A provision in a bail-in certificate has effect despite any restriction arising by reason of contract, any written law or rule of law in force before the appointed date of the bail‑in certificate, or the constitution of the Division 6 FI.(2) Where a bail-in certificate provides for the cancellation of an eligible instrument —(a)

the cancellation takes effect without other or further act by the Division 6 FI; and

(b)

the bail-in certificate has effect according to its tenor and is binding on any person affected by it.

(3) Where a bail-in certificate provides for the modification, conversion, or change in form of an eligible instrument —(a)

the modification, conversion, or change in form takes effect without other or further act by the Division 6 FI or resulting FI; and

(b)

the bail-in certificate has effect according to its tenor and is binding on any person affected by it.

(4) Where a bail-in certificate provides that an eligible instrument is to have effect as if a specified right had been exercised under it —(a)

the eligible instrument has effect as if the specified right had been exercised under it without other or further act by the Division 6 FI or resulting FI; and

(b)

the bail-in certificate has effect according to its tenor and is binding on any person affected by it.

(5) A reference in subsections (1), (2), (3) and (4) to anything taking or having effect is a reference to that thing taking or having effect from (and including) the appointed date.

(6) A person that fails to comply with any direction given to the person in the bail-in certificate shall be guilty of an offence and shall be liable on conviction —(a)

in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or

(b)

in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.

(7) Where a person is charged with an offence under subsection (6), it is a defence for the person to prove that —(a)

the person was not aware of the contravention of the direction; and

(b)

the person complied with the direction within a reasonable time after becoming aware of the contravention.

(8) Except as provided in subsection (7), it is not a defence for the person mentioned in that subsection that the person did not intend to or did not knowingly contravene the direction.

—(1) A provision in a bail-in certificate has effect despite any restriction arising by reason of contract, any written law or rule of law in force before the appointed date of the bail‑in certificate, or the constitution of the Division 6 FI.

(2) Where a bail-in certificate provides for the cancellation of an eligible instrument —(a)

the cancellation takes effect without other or further act by the Division 6 FI; and

(b)

the bail-in certificate has effect according to its tenor and is binding on any person affected by it.

(3) Where a bail-in certificate provides for the modification, conversion, or change in form of an eligible instrument —(a)

the modification, conversion, or change in form takes effect without other or further act by the Division 6 FI or resulting FI; and

(b)

the bail-in certificate has effect according to its tenor and is binding on any person affected by it.

(4) Where a bail-in certificate provides that an eligible instrument is to have effect as if a specified right had been exercised under it —(a)

the eligible instrument has effect as if the specified right had been exercised under it without other or further act by the Division 6 FI or resulting FI; and

(b)

the bail-in certificate has effect according to its tenor and is binding on any person affected by it.

(5) A reference in subsections (1), (2), (3) and (4) to anything taking or having effect is a reference to that thing taking or having effect from (and including) the appointed date.

(6) A person that fails to comply with any direction given to the person in the bail-in certificate shall be guilty of an offence and shall be liable on conviction —(a)

in the case of an individual, to a fine not exceeding $125,000 or to imprisonment for a term not exceeding 3 years or to both and, in the case of a continuing offence, to a further fine not exceeding $12,500 for every day or part of a day during which the offence continues after conviction; or

(b)

in any other case, to a fine not exceeding $250,000 and, in the case of a continuing offence, to a further fine not exceeding $25,000 for every day or part of a day during which the offence continues after conviction.

(7) Where a person is charged with an offence under subsection (6), it is a defence for the person to prove that —(a)

the person was not aware of the contravention of the direction; and

(b)

the person complied with the direction within a reasonable time after becoming aware of the contravention.

(8) Except as provided in subsection (7), it is not a defence for the person mentioned in that subsection that the person did not intend to or did not knowingly contravene the direction.