Document ID: chunk:federal_register_of_legislation:C2008C00236:clause:1_4
Version: federal_register_of_legislation:C2008C00236
Segment Type: clause
Provision Reference: sch 1 cl 4
Character Range: 3630–4810

4  At the end of section 5
Add:

 (5) A discretionary mutual fund is a fund (however constituted) for making payments on the happening of a specified event (where there is uncertainty as to whether, or when, the event will happen), that is a fund:
 (a) to which 2 or more persons contribute, and:
 (i) out of which payments may be made in respect of liabilities, losses, damages or expenses of the contributors; and
 (ii) that is governed by rules under which any such payment for the benefit of a contributor is subject to a discretion of a person or body; or
 (b) that is declared to be a discretionary mutual fund, or included in a class of funds that are declared to be discretionary mutual funds, by regulations made for the purposes of this paragraph.

 (6) However, a fund (however constituted) is not a discretionary mutual fund if:
 (a) a contributor has a right, in law or equity, to a payment of a kind referred to in subparagraph (5)(a)(i); or
 (b) the fund is:
 (i) declared not to be a discretionary mutual fund; or
 (ii) included in a class of funds that are declared not to be discretionary mutual funds;
  by regulations made for the purposes of this paragraph.