Document ID: chunk:federal_register_of_legislation:F2016L00343:body:0:p2
Version: federal_register_of_legislation:F2016L00343
Segment Type: other
Provision Reference: 
Character Range: 2729–5869

application form free of charge to any person who asks for it during the application period of the prospectus.";

       (b) after section 712 insert:

            "712A Prospectus content for debentures—interest rate and term information otherwise available
                (1) This section applies to an offer of a body's debentures for issue in the ordinary course of its business where:
                   (a) the debentures have a term of no more than 5 years; and

                   (b) a prospectus for the offer is lodged with ASIC.

                (2) Despite sections 710, 711 and 713, the prospectus need not specify the interest rate or the term of the debentures.

                (3) Subsection (2) applies where all of the following are satisfied:

                   (a) the prospectus clearly and prominently:

                       (i) explains how an applicant may ascertain the interest rate and term of each debenture offered at any time; and

                       (ii) advises the applicant to confirm the currency of any interest rate for the debentures prior to completing an application; and

                       (iii) states that a person that applies for the debentures may have rights to be repaid application monies if the application form does not specify an interest rate, an amount or a term, or specifies an interest rate which is not the current interest rate for debentures of the amount and term specified by the applicant;

                   (b) the application form makes provision for the applicant to specify or select the interest rate and term applicable to the debenture for which the application is made;

                   (c) the means by which an applicant may ascertain the interest rate and term are easily accessible and free of  charge, having regard to the kinds of persons likely to consider applying for the debentures;

                   (d) any change in the interest rate or term of a debenture is advertised in any media in which interest rates and changes in interest rates have been regularly advertised and notified promptly to each person from whom a copy of the prospectus is available and who regularly processes applications for debentures under the prospectus.";

       (c) after section 725 insert:

            "725A Out-of-date, incorrect or incomplete applications for debentures

                (1) This section applies to a body relying on subsection 712(8) or section 712A in relation to an offer of debentures and who receives an application using an incorrect application form.

                (2) The body must deal with the application under subsection (3) unless subsection (4) says otherwise.

                (3) The body must:

                   (a) repay the money received by it from the applicant; or

                   (b) give the applicant:

                       (i) a notice that informs them that their application was made using an incorrect application form and of their rights under this section; and

                       (ii) for a body relying on subsection 712(8)—a copy of the application form most recently