Document ID: chunk:federal_register_of_legislation:C2014A00100:clause:1_713a:p1
Version: federal_register_of_legislation:C2014A00100
Segment Type: clause
Provision Reference: sch 1 cl 713A (pt 1/4)
Character Range: 8276–10858

713A  Offer of simple corporate bonds

Simple corporate bonds
 (1) If the conditions set out in this section are satisfied in relation to an offer of securities for issue by a body:
 (a) the offer is an offer of simple corporate bonds; and
 (b) the securities are simple corporate bonds.

Securities must be debentures
 (2) The securities must be debentures.

Securities must be quoted on a prescribed financial market
 (3) The securities must be offered on the basis that:
 (a) the securities have been admitted to quotation on a prescribed financial market; or
 (b) an application for admission of the securities to quotation on a prescribed financial market has been made to the operator of that market; or
 (c) an application for admission of the securities to quotation on a prescribed financial market will be made to the operator of that market within 7 days after the date of the prospectus.
 (4) If, at a particular time, there is no prospectus, then, for the purposes of paragraph (3)(c), assume that:
 (a) there is a prospectus; and
 (b) the date of the prospectus is the first day of the offer period.

Securities must be in Australian currency
 (5) The securities must be denominated in Australian currency.

Securities for fixed term
 (6) The securities must be for a fixed term of not more than 15 years.

Principal payable at end of fixed term
 (7) The principal in respect of the securities must be repaid by the issuing body to the holder at the end of the fixed term.

Interest rate must be fixed or floating
 (8) The rate at which interest is payable on the securities must be:
 (a) a fixed rate; or
 (b) a floating rate that is comprised of a reference rate and a fixed margin.

Fixed rate etc. must not be decreased
 (9) If a fixed rate of interest is payable on the securities, the rate must not be decreased during the term of the securities.
 (10) If a floating rate of interest is payable on the securities, the fixed margin of the rate must not be decreased during the term of the securities.

Interest to be paid periodically etc.
 (11) Interest payments on the securities:
 (a) must be paid periodically; and
 (b) must be paid no later than the end of the fixed term; and
 (c) cannot be deferred or capitalised by the issuing body.

Security must not exceed $1,000
 (12) The price payable for each security must not exceed $1,000.

Securities may only be redeemed before fixed term in specified circumstances
 (13) The securities must not be redeemable (other than at the end of the fixed term) except in one or more of the following circumstances:
 (a)