Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:3_563aaa
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 3 cl 563AAA
Character Range: 554444–555000

563AAA  Redemption of debentures

Priorities

 (1) Debentures of a company under a trust deed that are issued in place of debentures under that deed that have been redeemed have the priority that the redeemed debentures would have had if they had never been redeemed.

Deposit of debentures to secure advance

 (2) Debentures of a company are not to be taken to be redeemed merely because:
 (a) the debentures secure advances on current account or otherwise; and
 (b) the company's account ceases to be in debit while those debentures remain available.