Corporations Act. Australia

Чтение книги онлайн.

      (1A) The borrower commits an offence if it intentionally or recklessly contravenes subsection (1).

      When debentures can be called mortgage debentures or debentures

      (2) The borrower may describe or refer to the debentures as:

      (a) mortgage debentures; or

      (b) debentures;

      if:

      (c) the repayment of all money that has been, or may be, deposited or lent under the debentures is secured by a first mortgage given to the trustee over land vested in the borrower or in any of the guarantors; and

      (d) the mortgage has been registered, or is a registrable mortgage that has been lodged for registration, in accordance with the law relating to the registration of mortgages of land in the place where the land is situated; and

      (e) the total amount of that money and of all other liabilities (if any) secured by the mortgage of that land ranking equally with the liability to repay that money does not exceed 60 % of the value of the borrower’s or guarantor’s interest in that land as shown in the valuation included in the disclosure document for the debentures.

      When debentures can be called debentures

      (3) The borrower may describe or refer to the debentures as debentures if:

      (a) the repayment of all money that has been, or may be, deposited or lent under the debentures has been secured by a security interest in favour of the trustee over the whole or any part of the tangible property of the borrower or of any of the guarantors; and

      (b) the tangible property that constitutes the security for the security interest is sufficient and is reasonably likely to be sufficient to meet the liability for the repayment of all such money and all other liabilities that:

      (i) have been or may be incurred; and

      (ii) rank in priority to, or equally with, that liability.