Document ID: chunk:federal_register_of_legislation:C2009A00108:clause:1_761ea:p2
Version: federal_register_of_legislation:C2009A00108
Segment Type: clause
Provision Reference: sch 1 cl 761EA (pt 2/3)
Character Range: 9820–12599

A non‑standard margin lending facility is a facility under the terms of which:
 (a) a natural person (the client) transfers one or more marketable securities, or a beneficial interest in one or more marketable securities (the transferred securities) to another person (the provider); and
 (b) the provider transfers property to the client (the transferred property) as consideration or security for the transferred securities; and
 (c) the transferred property is, or must be, applied wholly or partly to acquire one or more financial products, or a beneficial interest in one or more financial products; and
 (d) the client has a right, in the circumstances determined under the terms of the facility, to be given marketable securities equivalent to the transferred securities; and
 (e) if the current LVR of the facility exceeds a ratio, percentage, proportion or level (however described) determined under the terms of the facility, then:
 (i) the client becomes required to take action; or
 (ii) the provider becomes entitled to take action; or
 (iii) another person becomes required or entitled to take action;
  in accordance with the terms of the facility to reduce the current LVR of the facility.
 (6) The current LVR of a non‑standard margin lending facility at a particular time is the ratio, percentage, proportion or level (however described) that:
 (a) is determined under the terms of the facility; and
 (b) under the terms of the facility, represents a particular relationship between:
 (i) an amount determined at that time under the terms of the facility by reference to the value of the transferred property and any amount owing by the client to the provider; and
 (ii) the value of the transferred securities determined at that time under the terms of the facility.
 (7) A non‑standard margin lending facility is in margin call when paragraph (5)(e) applies in relation to the facility.

ASIC declarations in relation to margin lending facilities
 (8) ASIC may declare that a particular kind of facility is a margin lending facility. The declaration must give the meanings of margin call and limit in relation to that kind of facility.
 (9) ASIC may declare that a particular kind of facility is not a margin lending facility.
 (10) A declaration made under subsection (8) or (9):
 (a) must be in writing; and
 (b) is a legislative instrument for the purposes of the Legislative Instruments Act 2003.

Meaning of limit of a margin lending facility
 (11) The limit of a margin lending facility:
 (a) in relation to a standard margin lending facility—means the maximum amount of credit that may be provided by the provider to the client under the facility; and
 (b) in relation to a non‑standard margin lending facility—means the maximum amount of property that