THE CORPORATIONS LAW

CHAPTER 5 - EXTERNAL ADMINISTRATION

PART 5.6 - WINDING UP GENERALLY

Division 6 - Proof and ranking of claims

Subdivision D - Priorities

SECTION 563AAA   REDEMPTION OF DEBENTURES  

563AAA(1)  Priorities.  

Debentures of a company under a trust deed that are issued in place of debentures under that deed that have been redeemed have the priority that the redeemed debentures would have had if they had never been redeemed.

563AAA(2)  Deposit of debentures to secure advance.  

Debentures of a company are not to be taken to be redeemed merely because:

(a)  the debentures secure advances on current account or otherwise; and

(b)  the company's account ceases to be in debit while those debentures remain available.