Document ID: chunk:federal_register_of_legislation:C2025C00029:section:12:p21
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 12 (pt 21/43)
Character Range: 3998167–4001008

is an asset of yours, for the purposes of applying this Subdivision to the arrangement, you are treated as transferring a right under the arrangement to another entity if:
 (a) you retain the right but assume a new obligation; and
 (b) your assumption of the new obligation has the same effect, in substance, as transferring the right to another entity; and
 (c) the new obligation arises only to the extent to which the right to *financial benefits under the arrangement is satisfied; and
 (d) you cannot sell or pledge the right (other than as security in relation to the new obligation); and
 (e) you must, under the new obligation, provide financial benefits you receive in relation to the right to the entity to which you owe the new obligation without delay.

Historic rate rollover of derivative financial arrangement
 (5) For the purposes of paragraph (1)(b), all of your rights and/or obligations under a *financial arrangement that is a *derivative financial arrangement are taken to cease if there is an historic rate rollover of the arrangement.

230‑440  Exceptions

Equity interests etc.
 (1) A balancing adjustment is not made under this Subdivision in relation to a *financial arrangement at a time if:
 (a) the arrangement is a financial arrangement under section 230‑50 (equity interests etc.); and
 (b) neither Subdivision 230‑C nor Subdivision 230‑F apply to the arrangement immediately before that time.

Financial arrangements to which hedging financial arrangement elections apply
 (2) Balancing adjustments are not made under this Subdivision in relation to a *financial arrangement in relation to which a *hedging financial arrangement election applies.

Bad debts, margining and conversion into, or exchange for, ordinary shares
 (3) A balancing adjustment is not made under this Subdivision in relation to the following events:
 (a) a *financial arrangement being written off in whole or part as a bad debt;
 (b) a financial arrangement that is a *derivative financial arrangement being settled or closed out for margining purposes;
 (c) the ceasing of obligations or rights under a financial arrangement that is a *traditional security if:
 (i) the ceasing occurs because the traditional security is converted into ordinary shares in, or transferred to, a company that is the issuer of the traditional security or a *connected entity; and
 (ii) the traditional security was issued on the basis that it will or may convert into ordinary shares in, or be transferred to, the issuer of the traditional security or the connected entity;
 (d) the ceasing of obligations or rights under a financial arrangement that is a traditional security if:
 (i) the ceasing occurs because the traditional security is exchanged for ordinary shares in a company that is neither the issuer of the traditional security nor a connected