Document ID: chunk:federal_register_of_legislation:C2004C01070:clause:3_78
Version: federal_register_of_legislation:C2004C01070
Segment Type: clause
Provision Reference: sch 3 cl 78
Character Range: 547106–548763

78  Section 9 (definition of debenture)
Repeal the definition, substitute:

debenture of a body means a chose in action that includes an undertaking by the body to repay as a debt money deposited with or lent to the body. The chose in action may (but need not) include a charge over property of the body to secure repayment of the money. However, a debenture does not include:
 (a) an undertaking to repay money deposited with or lent to the body by a person if:
 (i) the person deposits or lends the money in the ordinary course of a business carried on by the person; and
 (ii) the body receives the money in the ordinary course of carrying on a business that neither comprises nor forms part of a business of borrowing money and providing finance
 (b) an undertaking by an Australian ADI to repay money deposited with it, or lent to it, in the ordinary course of its banking business
 (c) an undertaking to pay money under:
 (i) a cheque; or
 (ii) an order for the payment of money; or
 (iii) a bill of exchange
 (d) an undertaking to pay money under a promissory note that has a face value of at least $50,000
 (e) an undertaking by a body corporate to pay money to a related body corporate
 (f) an undertaking to repay money that is prescribed by the regulations.

For the purposes of this definition, if a chose in action that includes an undertaking by a body to pay money as a debt is offered as consideration for the acquisition of securities under an off-market takeover bid, or is issued under a compromise or arrangement under Part 5.1, the undertaking is taken to be an undertaking to repay as a debt money deposited with or lent to the body.