Document ID: chunk:federal_register_of_legislation:C2018A00014:clause:1_11
Version: federal_register_of_legislation:C2018A00014
Segment Type: clause
Provision Reference: sch 1 cl 11
Character Range: 8721–10078

11  After section 705‑75
Insert:

705‑76  Liability arising from transfer or assignment of securitised assets
  This section covers an accounting liability (the securitisation liability) if the following circumstances exist:
 (a) at the joining time, a *member of the joined group is an *ADI or a *financial entity;
 (b) in working out the step 2 amount mentioned in subsection 705‑70(1) in relation to the joining entity, an amount would be added under that subsection for the securitisation liability (disregarding subsection 705‑70(4));
 (c) the joining entity transferred or equitably assigned one or more assets (the underlying securitised assets) to another entity before the joining time;
 (d) the securitisation liability:
 (i) arose from the transfer or equitable assignment of the underlying securitised assets; and
 (ii) is a liability of the joining entity at the joining time (according to the joining entity's *accounting principles for tax cost setting);
 (e) the other entity was established for the purpose of securitising assets;
 (f) the underlying securitised assets were securitised in accordance with that purpose before the joining time;
 (g) at the joining time the *market value of the joining entity's interest in the underlying securitised assets is nil, or is substantially less than the amount of the securitisation liability.