Document ID: chunk:federal_register_of_legislation:C2025C00122:section:2:p16
Version: federal_register_of_legislation:C2025C00122
Segment Type: section
Provision Reference: s 2 (pt 16/53)
Character Range: 378267–381029

provision of information about the financial management of approved providers.

Division 52N—Permitted uses

52N‑1  Refundable deposits and accommodation bonds to be used only for permitted purposes
 (1) An approved provider must not use a *refundable deposit or *accommodation bond unless the use is permitted.

Permitted use—general
 (2) An approved provider is permitted to use a *refundable deposit or *accommodation bond for the following:
 (a) for capital expenditure of a kind specified in the Fees and Payments Principles and in accordance with any requirements specified in those Principles;
 (b) to invest in a financial product covered by subsection (3);
 (c) to make a loan in relation to which the following conditions are satisfied:
 (i) the loan is not made to an individual;
 (ii) the loan is made on a commercial basis;
 (iii) there is a written agreement in relation to the loan;
 (iv) it is a condition of the agreement that the money loaned will only be used as mentioned in paragraph (a), (b), (d) or (e);
 (v) the agreement includes any other conditions specified in the Fees and Payments Principles;
 (d) to refund, or to repay debt accrued for the purposes of refunding, *refundable deposit balances, *accommodation bond balances or *entry contribution balances;
 (e) to repay debt accrued for the purposes of capital expenditure of a kind specified in the Fees and Payments Principles;
 (f) to repay debt that is accrued before 1 October 2011, if the debt is accrued for the purposes of providing *aged care to care recipients;
 (g) for a use permitted by the Fees and Payments Principles.
Note: An approved provider, and the approved provider's key personnel, may commit an offence if the approved provider uses a refundable deposit or accommodation bond otherwise than for a permitted use (see section 52N‑2).

Permitted use—financial products
 (3) For the purposes of paragraph (2)(b), the following are financial products (within the meaning of Division 3 of Part 7.1 of the Corporations Act 2001) covered by this subsection:
 (a) any deposit‑taking facility made available by an ADI in the course of its banking business (within the meaning of the Banking Act 1959), other than an RSA within the meaning of the Retirement Savings Accounts Act 1997;
Note 1: ADI is short for authorised deposit‑taking institution.
Note 2: RSA is short for retirement savings account.
 (b) a debenture, stock or bond issued or proposed to be issued by the Commonwealth, a State or a Territory;
 (c) a security, other than a security of a kind specified in the Fees and Payments Principles;
 (d) any of the following in relation to a registered scheme:
 (i) an interest in the scheme;
 (ii) a legal or equitable right or interest in an interest covered