Document ID: chunk:federal_register_of_legislation:C2025C00185:section:1234a
Version: federal_register_of_legislation:C2025C00185
Segment Type: section
Provision Reference: s 1234A
Character Range: 5166423–5167911

1234A  Requirement for segregated application of assets of sub‑funds
 (1) The assets of a sub‑fund of a CCIV must not be applied, or dealt with, whether directly or indirectly:
 (a) subject to paragraph (b), for any purpose other than a purpose covered by section 1234B; or
 (b) for a purpose prescribed by regulations made for the purposes of this paragraph.
Note: For the consequences of a contravention of this requirement, see section 1234F.
 (2) Subsection (1) does not apply to:
 (a) money or property to which section 1234 applies; or
 (b) assets of a sub‑fund of the CCIV, to the extent the assets consist of property to which section 1233K (about property that has to be converted into money etc.) applies.
Note: For paragraph (b), see instead section 1234C.
 (3) The assets of 2 or more sub‑funds of a CCIV must not be applied jointly to acquire a single item of property of the CCIV.
Note: A single item of property that forms part of the assets of 2 or more sub‑funds must be converted into money or other fungible property: see section 1233K.

Liquidators
 (4) However, a liquidator or provisional liquidator of a sub‑fund of a CCIV may:
 (a) make a disposition of assets of the sub‑fund that is an exempt disposition for the purposes of subsection 468(2), as that subsection applies to the sub‑fund under Division 5 of Part 8B.6; or
 (b) disclaim property of a sub‑fund under Division 7A of Part 5.6, as that Division applies to the sub‑fund under Division 5 of Part 8B.6.