Document ID: chunk:federal_register_of_legislation:C2024A00104:section:310:p1
Version: federal_register_of_legislation:C2024A00104
Segment Type: section
Provision Reference: s 310 (pt 1/2)
Character Range: 485103–487751

310  Refundable deposits to be used only for permitted purposes
 (1) A registered provider must not use a refundable deposit unless the use is permitted by this section.

Permitted uses
 (2) A registered provider is permitted to use a refundable deposit for the following:
 (a) for capital expenditure of a kind prescribed by the rules;
 (b) to invest in a financial product (within the meaning of Division 3 of Part 7.1 of the Corporations Act 2001) covered by subsection (3);
 (c) to make a loan in relation to which the following conditions are satisfied:
 (i) the loan is not made to an individual;
 (ii) the loan is made on a commercial basis;
 (iii) there is a written agreement in relation to the loan;
 (iv) it is a condition of the agreement that the money loaned will only be used as mentioned in paragraph (a), (b), (d) or (e) of this subsection;
 (v) the agreement includes any other conditions prescribed by the rules;
 (d) to refund, or to repay debt accrued for the purposes of refunding, refundable deposit balances;
 (e) to repay debt accrued for the purposes of capital expenditure of a kind prescribed by the rules;
 (f) for a use prescribed by the rules.
Note: A registered provider, and the responsible persons of the registered provider, may commit an offence if the registered provider uses a refundable deposit and the use is not permitted by this section (see section 178).
 (3) For the purposes of paragraph (2)(b), the following financial products are covered by this subsection:
 (a) any deposit‑taking facility made available by an ADI in the course of its banking business (within the meaning of the Banking Act 1959), other than an RSA;
 (b) a debenture, stock or bond issued, or proposed to be issued, by the Commonwealth, a State or a Territory;
 (c) a security, other than a security of a kind prescribed by the rules;
 (d) any of the following in relation to a registered scheme (within the meaning of the Corporations Act 2001):
 (i) an interest in the scheme;
 (ii) a legal or equitable right or interest in an interest covered by subparagraph (i);
 (iii) an option to acquire, by way of issue, an interest or right covered by subparagraph (i) or (ii);
 (e) a financial product prescribed by the rules.

Rules
 (4) Without limiting paragraphs (2)(a) or (f), the rules may prescribe that a use of a refundable deposit is only permitted for the purposes of those paragraphs if:
 (a) specified circumstances apply; or
 (b) the registered provider complies with conditions prescribed by the rules.
Note: For example, the rules might prescribe that the use of a refundable deposit is only permitted if the registered