Document ID: chunk:federal_register_of_legislation:C2025C00029:section:1:p22
Version: federal_register_of_legislation:C2025C00029
Segment Type: section
Provision Reference: s 1 (pt 22/35)
Character Range: 4113353–4115897

covered by subsection (1), (2) or (3) is not a limited recourse debt if, having regard to all relevant circumstances, it would be unreasonable for the obligation to be treated as limited recourse debt.
 (7) A *limited recourse debt is a non‑arm's length limited recourse debt if the debtor and creditor do not deal with each other at *arm's length in relation to the debt.

243‑25  When is a debt arrangement terminated?
 (1) A debt arrangement is taken to have terminated if:
 (a) it is actually terminated; or
 (b) the debtor's obligation to repay the debt is waived, novated or otherwise varied so as to reduce, transfer or extinguish the debt; or
 (c) an agreement is entered into to waive, novate or otherwise vary the debtor's obligation to repay the debt so as to reduce, transfer or extinguish the debt; or
 (d) the creditor ceases to have an entitlement to recover the debt from the debtor (other than as a result of an *arm's length assignment of some or all of the creditor's rights under the debt arrangement); or
 (e) the debtor ceases to be the owner or the *quasi‑owner of some or all of the *debt property because that property is surrendered to the creditor because of the debtor's failure to pay the whole or a part of the debt; or
 (f) the debtor ceases to be the owner of a beneficial interest in some or all of the debt property because the interest is surrendered to the creditor because of the debtor's failure to pay the whole or a part of the debt; or
 (g) the debt becomes a bad debt.
 (2) However, a debt arrangement that is a notional loan arising because of Division 240 (about arrangements treated as a sale and loan) is not taken to have terminated merely because it has been renewed or extended.
Note: Under Division 240, notional loans are taken to have ended if the relevant arrangement is renewed or extended.
 (3) Where a debt is terminated under paragraph (1)(b) or (c) as a result of the debt being reduced, the remaining debt is taken to be a new debt to which section 243‑15 applies.

243‑30  What is the financed property and the debt property?
 (1) Property is the financed property if the expenditure referred to in paragraph 243‑15(1)(a) is on the property, is on the acquisition of the property, results in the creation of the property or is otherwise connected with the property.
 (2) If the debt agreement is a notional loan arising under Division 240 (about arrangements treated as a sale and loan), the property that is the subject of the agreement is the financed property.
 (3) Property is the