Document ID: chunk:federal_register_of_legislation:C2023A00076:clause:5_609b:p2
Version: federal_register_of_legislation:C2023A00076
Segment Type: clause
Provision Reference: sch 5 cl 609B (pt 2/2)
Character Range: 315604–317148

not subject to escrow have accepted into the bid; and
 (ii) the agreement requires that the escrow securities be returned to escrow if the bid does not become unconditional; and
 (c) the agreement allows the escrow securities to be transferred or cancelled as part of a merger by way of a compromise or arrangement under Part 5.1; and
 (d) the agreement terminates no later than:
 (i) if the person who entered into the agreement is the body corporate mentioned in subsection (1)—2 years after the agreement is entered into; or
 (ii) otherwise—1 year after the agreement is entered into; and
 (e) if the agreement permits the holder to create a security interest in some or all of the escrow securities in favour of a person who does not have a relevant interest in the escrow securities because of subsection 609(1)—the agreement requires that the holder must not create a security interest in favour of the person unless the person has agreed in writing to take or acquire the security interest in the escrow securities subject to the terms of the agreement; and
 (f) if the agreement permits the holder to transfer the holder's interests in the escrow securities to another person—requires that the holder must not do so if:
 (i) the transfer would result in a change in the beneficial ownership of the escrow securities; or
 (ii) the transfer would result in an extension in the period of the agreement; or
 (iii) the transferee does not agree to be subject to the same restrictions on disposal of the escrow securities under the agreement.