The aim of Australia's Payment Systems and Netting Act 1998
(PSN Act) is primarily to protect the operation of certain
payment systems (including real-time gross settlement systems
(RTGS) such as Austraclear) and netting contracts in the event
of the insolvency of one of the participants in the relevant
payment system or one of the parties to the relevant netting
Close-out netting contracts are regulated under Part 4 of
the PSN Act. These contracts are in summary, contracts where,
if a certain event happens, particular obligations of the
parties terminate or may be terminated, the termination values
are able to be calculated and the termination values may be
netted so that only a net amount is payable.
Other types of contracts can be included or excluded from
the definition, however no relevant declarations have been made
at the present time. The primary types of contract that fall
within the close-out...