Document ID: chunk:federal_register_of_legislation:C2013C00453:clause:1_12:p20
Version: federal_register_of_legislation:C2013C00453
Segment Type: clause
Provision Reference: sch 1 cl 12 (pt 20/39)
Character Range: 188666–191540

one of the rights or obligations that constitute the financial arrangement.
Note: See subsections 230‑45(1) and 230‑50(1) and (2) for the rights and/or obligations that constitute a financial arrangement.

Modifications for arrangements that are assets
 (3) If the *financial arrangement is an asset of yours at the time the event referred to in subsection (1) occurs, paragraphs (1)(a) and (c) do not apply unless the effect of the transfer is to transfer to the other entity substantially all the risks and rewards of ownership of the interest transferred.
 (4) If a *financial arrangement is an asset of yours, for the purposes of applying this Subdivision to the arrangement, you are treated as transferring a right under the arrangement to another entity if:
 (a) you retain the right but assume a new obligation; and
 (b) your assumption of the new obligation has the same effect, in substance, as transferring the right to another entity; and
 (c) the new obligation arises only to the extent to which the right to *financial benefits under the arrangement is satisfied; and
 (d) you cannot sell or pledge the right (other than as security in relation to the new obligation); and
 (e) you must, under the new obligation, provide financial benefits you receive in relation to the right to the entity to which you owe the new obligation without delay.

Historic rate rollover of derivative financial arrangement
 (5) For the purposes of paragraph (1)(b), all of your rights and/or obligations under a *financial arrangement that is a *derivative financial arrangement are taken to *cease if there is an historic rate rollover of the arrangement.

230‑440  Exceptions

Equity interests etc.
 (1) A balancing adjustment is not made under this Subdivision in relation to a *financial arrangement at a time if:
 (a) the arrangement is a financial arrangement under section 230‑50 (equity interests etc.); and
 (b) neither Subdivision 230‑C nor Subdivision 230‑F apply to the arrangement immediately before that time.

Financial arrangements to which hedging financial arrangement elections apply
 (2) Balancing adjustments are not made under this Subdivision in relation to a *financial arrangement in relation to which a *hedging financial arrangement election applies.

Bad debts, margining and conversion into, or exchange for, ordinary shares
 (3) A balancing adjustment is not made under this Subdivision in relation to the following events:
 (a) a *financial arrangement being written off in whole or part as a bad debt;
 (b) a financial arrangement that is a *derivative financial arrangement being settled or closed out for margining purposes;
 (c) the ceasing of obligations or rights under a financial arrangement that is a *traditional security if:
 (i) the ceasing occurs because the traditional security is converted into ordinary shares in, or transferred to,