Document ID: chunk:federal_register_of_legislation:C2025C00185:section:563c
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 563C
Character Range: 1900984–1901657

563C  Debt subordination
 (1) Nothing in this Division renders a debt subordination by a creditor of a company unlawful or unenforceable, except so far as the debt subordination would disadvantage any creditor of the company who was not a party to, or otherwise concerned in, the debt subordination.
 (2) In this section:
debt subordination means an agreement or declaration by a creditor of a company, however expressed, to the effect that, in specified circumstances:
 (a) a specified debt that the company owes the creditor; or
 (b) a specified part of such a debt;
will not be repaid until other specified debts that the company owes are repaid to a specified extent.