Document ID: chunk:federal_register_of_legislation:C2025C00014:section:121d:p1
Version: federal_register_of_legislation:C2025C00014
Segment Type: section
Provision Reference: s 121D (pt 1/4)
Character Range: 1123842–1126552

121D  Meaning of OB activity

Kinds of OB activity
 (1) Each of the following things done by an OBU is an OB activity (offshore banking activity) of the OBU (subject to sections 121EA and 121EAA):
 (a) a borrowing or lending activity described in subsection (2); or
 (b) a guarantee‑type activity described in subsection (3); or
 (c) a trading activity described in subsection (4) (subject to subsection (4A)); or
 (d) an OB eligible contract activity (see section 121DB); or
 (e) an investment activity described in subsection (6), (6A) or (6B); or
 (f) an OB advisory activity (see section 121DC); or
 (g) a hedging activity described in subsection (8); or
 (ga) an OB leasing activity (see section 121DD); or
 (h) any other activity involving an offshore person, being an activity declared by regulations for the purposes of this paragraph to be an OB activity.

Borrowing or lending activity
 (2) For the purposes of paragraph (1)(a), a borrowing or lending activity is:
 (a) borrowing money from an offshore person where, if that person is a related person or a person to whom paragraph 121E(b) applies and is not an OBU, the money is not Australian currency; or
 (b) lending money, or making commitments to lend money, to an offshore person where, if that person is a person to whom paragraph 121E(b) applies and is not an OBU, the money is not Australian currency; or
 (c) borrowing gold from an offshore person; or
 (d) lending gold to an offshore person; or
 (e) acting as an arranger in a syndicated lending arrangement that includes a borrowing or lending activity to which paragraph (a), (b), (c) or (d) applies.

Guarantee‑type activity
 (3) For the purposes of paragraph (1)(b), a guarantee‑type activity is:
 (a) providing a guarantee or letter of credit to an offshore person in relation to activities that are, or will be, conducted:
 (i) wholly outside Australia; or
 (ii) in Australia to an extent that is not material; or
 (b) underwriting a risk for an offshore person in respect of:
 (i) offshore property; or
 (ii) an event, if the likelihood of the event happening in Australia is not material; or
 (c) syndicating a loan for an offshore person; or
 (d) issuing a performance bond to an offshore person in relation to activities that are, or will be, conducted:
 (i) wholly outside Australia; or
 (ii) in Australia to an extent that is not material;
where, if the offshore person is a related person, any money payable under the guarantee, letter, underwriting, loan or bond is not Australian currency.

Trading activity
 (4) For the purposes of paragraph (1)(c), a trading activity is:
 (a) trading with an offshore person in:
 (i) securities issued by non‑residents; or
 (ii) eligible