Document ID: chunk:federal_register_of_legislation:C2025C00134:section:67:p2
Version: federal_register_of_legislation:C2025C00134
Segment Type: section
Provision Reference: s 67 (pt 2/2)
Character Range: 452955–455029

time the relevant investment decision was made, it was likely that the borrowing would not be needed; and
 (ii) the borrowing is not taken, under a determination made, by legislative instrument, by the Regulator, to be exempt from this paragraph; and
 (c) the period of the borrowing does not exceed 7 days; and
 (d) if the borrowing were to take place, the total amount borrowed by the trustee would not exceed 10% of the value of the assets of the fund.

Exception—private sector funds
 (5) Subsection (1) does not prohibit a trustee of a private sector fund from maintaining an existing borrowing of money if:
 (a) the trustee had, at a time before 12 June 1986, borrowed the money in circumstances that did not comply with the standard set out in paragraph 16(1)(b) of the Occupational Superannuation Standards Regulations; and
 (b) the maintenance occurs before whichever is the earliest of the following:
 (i) the day on which the trustee made such arrangements as were necessary to comply with that standard;
 (ii) the day on which the trustee makes such arrangements as are necessary to comply with subsection (1);
 (iii) 1 July 1995.

Exception—public sector funds
 (6) Subsection (1) does not prohibit the trustee of a public sector fund from maintaining an existing borrowing of money if:
 (a) the trustee had, at a time before 2 July 1990, borrowed the money in circumstances that did not comply with the standard set out in paragraph 16(1)(b) of the Occupational Superannuation Standards Regulations; and
 (b) the maintenance occurs before whichever is the earliest of the following:
 (i) the day on which the trustee made such arrangements as were necessary to comply with that standard;
 (ii) the day on which the trustee makes such arrangements as are necessary to comply with subsection (1);
 (iii) 1 July 2000.

Civil penalty provision
 (7) Subsection (1) is a civil penalty provision as defined by section 193, and Part 21 therefore provides for civil and criminal consequences of contravening, or of being involved in a contravention of, that subsection.