THE CORPORATIONS LAW

CHAPTER 2K - CHARGES

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PART 2K.2 - REGISTRATION

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SECTION 268   ASSIGNMENT AND VARIATION OF CHARGES  

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268(1)  [Notice to be given]  

Where, after a registrable charge on property of a company has been created, a person other than the original chargee becomes the holder of the charge, the person who becomes the holder of the charge shall, within 45 days after he, she or it becomes the holder of the charge:

(a)  lodge a notice stating that he, she or it has become the holder of the charge; and

(b)  give the company a copy of the notice.

268(2)  [Notice of certain variations to be lodged by company]  

Where, after a registrable charge on property of a company has been created, there is a variation in the terms of the charge having the effect of:

(a)  increasing the amount of the debt or increasing the liabilities (whether present or prospective) secured by the charge; or

(b)  prohibiting or restricting the creation of subsequent charges on the property;

the company shall, within 45 days after the variation occurs, ensure that there is lodged a notice setting out particulars of the variation and accompanied by the instrument (if any) effecting the variation or a certified copy of that instrument.

268(3)  [Debts involving unspecified amounts or further advances]  

Where a charge created by a company secures a debt of an unspecified amount or secures a debt of a specified amount and further advances, a payment or advance made by the chargee to the company in accordance with the terms of the charge shall not be taken, for the purposes of subsection (2), to be a variation in the terms of the charge having the effect of increasing the amount of the charge or the liabilities (whether present or prospective) secured by the charge.

268(4)  [Reference to chargee]  

A reference in this section to the chargee in relation to a charge shall, if the charge is constituted by a debenture and debentures and there is a trustee for debenture holders, be construed as a reference to the trustee for debenture holders.

268(5)  [Notice of charges under sec 263]  

Nothing in section 263 requires the lodgment of a notice under that section in relation to a charge merely because of the fact that the terms of the charge are varied only in a manner mentioned in this section.

 

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