Document ID: chunk:federal_register_of_legislation:C2007A00055:clause:7_1:p3
Version: federal_register_of_legislation:C2007A00055
Segment Type: clause
Provision Reference: sch 7 cl 1 (pt 3/4)
Character Range: 65227–67792

the repayment of a loan or credit, the payment of an application fee or brokerage commission and the payment of stamp duty or other tax.

 (4) If the *capital protected borrowing is at a fixed rate for all or part of the term of the *borrowing, use the Reserve Bank of Australia's Indicator Rate for Personal Unsecured Loans—Variable Rate (the benchmark rate) at the time the first of the amounts referred to in step 1 of the method statement in subsection (3) was incurred during the term of the borrowing or the relevant part of the term.

 (5) If the *capital protected borrowing is at a variable rate for all or part of the term of the *borrowing, use the average of the benchmark rates published by the Reserve Bank of Australia during the term of the borrowing or the relevant part of the term.

 (6) If this section applies to a borrower, this Act applies as if:
 (a) the borrower's excess from the method statement in subsection (3); or
 (b) the amount that is reasonably attributable to *capital protection as mentioned in paragraph (1)(b);
(reduced by any amount the borrower incurred under or in respect of the *capital protected borrowing for an explicit put option) were incurred only for a put option granted by the lender or by another entity under the *arrangement.

247‑25  Number of put options

 (1) If a *capital protected borrowing specifies more than one occasion on which the *capital protection can be invoked, this Act applies as if there were a separate put option for each of those occasions. So much of the amount to which subsection 247‑20(6) applies as is reasonably attributable to each option is taken to have been incurred for that option.

 (2) However, if a borrower may invoke the *capital protection under a *capital protected borrowing at any time up to the end of a period, or only at the end of a period, for which there is capital protection, this Act applies as if there were a single put option for that period.

247‑30  Exercise or expiry of option

 (1) If the *capital protection under a *capital protected borrowing is invoked:
 (a) the borrower is taken to have exercised the put option; and
 (b) any interest in a *share, unit in a unit trust or stapled security that is acquired by the lender or another entity under the *arrangement as a result of that capital protection being invoked is taken to have been disposed of by the borrower as a result of the exercise of the option.

 (2) If the *capital protection under a *capital protected borrowing is not invoked on or before the last occasion on which it could