Document ID: chunk:federal_register_of_legislation:F2024L01525:body:0:p36
Version: federal_register_of_legislation:F2024L01525
Segment Type: other
Provision Reference: 
Character Range: 96707–99547

issuer or related entity of the issuer will not constitute an incentive to redeem provided there is at least two years from the date upon which the holder is required to sell the instrument to the nearest subsequent date upon which conversion may be exercised.
 5.          Where an instrument is drawn down in a series of tranches, it must meet the requirements in this Prudential Standard as if each tranche is a separate Tier 2 Capital instrument in its own right and the minimum original maturity of each tranche must be five years from the time proceeds of the issue are irrevocably received by the issuer.
 6.          The documentation of any debt instrument or other capital instrument of the issuer of a Tier 2 Capital instrument must not include any of the following clauses:
         1.           a cross-default clause linking the issuer's obligations under the Tier 2 Capital instrument to default by the issuer under any of its obligations, or default by another party (related or otherwise) under the debt instrument or other capital instrument; or
         2.           an event of default clause specifying an event relating to the Tier 2 Capital instrument that brings the issuer into default under the debt instrument or other capital instrument.
 7.          For the purposes of paragraph 37(b), an event of default clause includes a clause specifying any of the following events:
         1.           the exercise or non-exercise of discretions within the Tier 2 Capital instrument;
         2.           an adverse event or change, however so described or determined, occurring in respect of the Tier 2 Capital instrument; or
         3.           any consequence arising from, or any action taken or intended to prevent[43] the above events or a default by the issuer under a Tier 2 Capital instrument,
    but does not include a clause specifying the irrevocable winding up (that is, either by way of an effective resolution by shareholders or members for winding up, or a court order has been made, and the time for appeal of the decision has passed) of the issuer.
 1.          Where issue documentation, marketing of an instrument, or any ongoing dealings with investors suggest that the instrument has attributes not consistent with the eligibility requirements in this Attachment for Tier 2 Capital instruments the instrument is ineligible to be included in the private health insurer's Tier 2 Capital.
 2.          The instrument may be subject to the laws of a foreign country, except that the terms of the instrument that relate to non-viability conversion or write-off (refer to Attachment E to this Prudential Standard) must be subject to the laws of an Australian jurisdiction.
 3.          Where the instrument is subject to the laws of a foreign country, the private health insurer must also ensure all