Document ID: chunk:federal_register_of_legislation:C2007A00079:clause:1_12
Version: federal_register_of_legislation:C2007A00079
Segment Type: clause
Provision Reference: sch 1 cl 12
Character Range: 10411–12196

12  At the end of section 109R
Add:

 (5) Subsection (2) does not apply to a payment if:
 (a) the payment is made to refinance the loan mentioned in subsection (1) (the old loan); and
 (b) the entity to which the old loan was made has another loan (the primary loan) from another entity; and
 (c) the old loan becomes subordinated to the primary loan; and
 (d) the refinancing of the old loan mentioned in paragraph (a) took place in connection with that subordination; and
 (e) that subordination arose as a result of circumstances beyond the control of the entity to which the old loan was made; and
 (f) the entity to which the old loan was made and the other entity dealt with each other at arm's length in relation to that subordination; and
 (g) the private company and the other entity dealt with each other at arm's length in relation to that subordination.

 (6) Subsection (2) does not apply to a payment if:
 (a) the payment is made to refinance the loan mentioned in subsection (1) (the old loan); and
 (b) the refinancing results in another loan (the new loan); and
 (c) the maximum term of the old loan under subsection 109N(3) was 7 years; and
 (d) the maximum term of the new loan under subsection 109N(3) is 25 years (reduced in accordance with subsection 109N(3B)).

 (7) Subsection (2) does not apply to a payment if:
 (a) the payment is made to refinance the loan mentioned in subsection (1) (the old loan); and
 (b) the refinancing results in another loan (the new loan); and
 (c) the maximum term of the old loan under subsection 109N(3) was 25 years; and
 (d) the maximum term of the new loan under subsection 109N(3) is:
 (i) unless subparagraph (ii) applies—7 years; or
 (ii) if subsection 109N(3D) applies—7 years reduced in accordance with that subsection.