Document ID: chunk:federal_register_of_legislation:C2025C00029:section:3:p1
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 3 (pt 1/3)
Character Range: 4055730–4058518

3                         A stapled security      All companies involved are *widely held companies and all trusts involved are such widely held unit trusts

 (2) A *share, unit in a unit trust or a stapled security that fails the widely held requirement set out in the table in subsection (1) is treated as satisfying that requirement if the failure:
 (a) is of a temporary nature only; and
 (b) is caused by circumstances outside the investor's control.
 (3) In applying subsection (1), disregard an asset, or the cash proceeds from disposing of an asset, if:
 (a) the trustee became entitled to the asset in respect of a *share, unit or stapled security that was, or was part of, the underlying investment just before the entitlement arose; and
 (b) the asset is not a *share, unit in a unit trust, or stapled security; and
 (c) if the asset is an interest in an entity, or a right, option or similar interest that gives the holder an entitlement to acquire an interest in an entity:
 (i) an interest in the entity is listed for quotation in the official list of an *approved stock exchange; or
 (ii) the entity meets a widely held requirement set out in column 2 of item 1 or 2 of the table in subsection (1); and
 (d) the underlying investment comprises one or more other assets that are not disregarded under this subsection.
Example: Examples of the types of assets disregarded by this subsection are:
(a) assets that represent distributions and capital payments in respect of the underlying investment; and
(b) bonus rights issued in respect of the underlying investment.
 (4) Despite subsections (1) to (3), the underlying investment does not satisfy the requirement in this section if an asset that is, or is part of, the underlying investment is an *ESS interest to which Subdivision 83A‑B or 83A‑C (about employee share schemes) applies.

235‑840  What trusts are covered—limited recourse borrowings by regulated superannuation funds
  This section covers a trust if:
 (a) under an *arrangement, an asset or assets (the underlying investment) is acquired by the trustee of the trust for the benefit of a trustee of a *regulated superannuation fund to secure a *borrowing; and
 (b) until the borrowing is repaid, the arrangement is covered by:
 (i) the exception in subsection 67A(1) of the Superannuation Industry (Supervision) Act 1993 (which is about limited recourse borrowing arrangements); or
 (ii) the exception in former subsection 67(4A) of that Act (which was about instalment warrants).

235‑845  Interactions with other provisions
 (1) Section 106‑50 (about absolutely entitled beneficiaries) does not apply to an *instalment trust asset.
 (2) Section 106‑60 (about securities, charges and encumbrances) does not apply to an *instalment trust asset.
 (3) Nothing in