Payment Systems and Netting Act 1998


This act regulates close-out netting contracts. These contracts are binding documents which allow obligations between parties to be terminated after the occurrence of a particular event. They can be "re-netted", so that only a net cash amount is payable.

The Reserve Bank must approve this payment system, considering that all participants settle transactions on their own account. It may approve this netting arrangement if the rules governing the accord are handled by an external administration body.

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Friday, July 19, 2013
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Office of Parliamentary Counsel, Canberra
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