Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:1_260gf:p2
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 1 cl 260GF (pt 2/2)
Character Range: 133620–135438

the total amount to be advanced on the security of the charge is indeterminate; and
 (ii) the advances are merged in a current account with bankers, trade creditors or anyone else; and
 (g) any other matters that may materially prejudice any security or the interests of the debenture holders.

Note: Paragraph (f)—the borrower has a duty to inform the trustee about charges as they are created (see section 260GE).

 (5) If the borrower has deposited money with, or lent money to, a related body corporate during the quarter, the report must also include details of:
 (a) the total of the money deposited with, or lent to, the related body corporate during the quarter (see subsection (7)); and
 (b) the total amount of money owing to the borrower at the end of the quarter in respect of the deposits or loans to the related body corporate.
Disregard any amount that the borrower deposits with an ADI in the normal course of the borrower's business.

 (6) If the borrower has assumed a liability of a related body corporate during the quarter, the report must also include details of the extent of the liability assumed during the quarter and the extent of the liability as at the end of the quarter.

 (7) For the purposes of subsections (5) and (6), the report:
 (a) must distinguish between deposits, loans and assumptions of liability that are secured and those that are unsecured; and
 (b) may exclude any deposit, loan or assumption of liability on behalf of the related body corporate if it has:
 (i) guaranteed the repayment of the debentures of the borrower; and
 (ii) secured the guarantee by a charge over all of its property in favour of the trustee.

Formalities

 (8) The report must:
 (a) be made in accordance with a resolution of the directors; and
 (b) specify the date on which the report is made.