Document ID: chunk:federal_register_of_legislation:C2004C01257:clause:2_1:p12
Version: federal_register_of_legislation:C2004C01257
Segment Type: clause
Provision Reference: sch 2 cl 1 (pt 12/20)
Character Range: 37697–40218

the debtor in the event of default in payment of the debt or of interest are limited wholly or predominantly to any or all of the following:
 (a) rights (including the right to money payable) in relation to any or all of the following:
 (i) the *debt property or the use of the debt property;
 (ii) goods produced, supplied, carried, transmitted or delivered, or services provided, by means of the debt property;
 (iii) the loss or disposal of the whole or a part of the debt property or of the debtor's interest in the debt property;
 (b) rights in respect of a mortgage or other security over the debt property or other property;
 (c) rights that arise out of any *arrangement relating to the financial obligations of an end‑user of the *financed property towards the debtor, and are financial obligations in relation to the financed property.

 (2) An obligation imposed by law on an entity (the debtor) to pay an amount to another entity (the creditor) is also a limited recourse debt if it is reasonable to conclude that the rights of the creditor as against the debtor in the event of default in payment of the debt or of interest are capable of being limited in the way mentioned in subsection (1). In reaching this conclusion, have regard to:
 (a) the assets of the debtor (other than assets that are indemnities or guarantees provided in relation to the debt);
 (b) any *arrangement to which the debtor is a party;
 (c) whether all of the assets of the debtor would be available for the purpose of the discharge of the debt (other than assets that are security for other debts of the debtor or any other entity);
 (d) whether the debtor and creditor are dealing at *arm's length in relation to the debt.

 (3) An obligation imposed by law on an entity (the debtor) to pay an amount to another entity (the creditor) is also a limited recourse debt if there is no *debt property and it is reasonable to conclude that the rights of the creditor as against the debtor in the event of default in payment of the debt or of interest are capable of being limited. In reaching this conclusion, have regard to:
 (a) the assets of the debtor (other than assets that are indemnities or guarantees provided in relation to the debt);
 (b) any *arrangement to which the debtor is a party;
 (c) whether all of the assets of the debtor would be available for the purpose of the discharge of the debt (other than assets that are security for other debts of the debtor or any other entity);
 (d) whether the debtor and creditor are