Superannuation Legislation Amendment Act (No. 4) 1999 (199 of 1999)

Schedule 1  

30   Subsection 71(2)

Repeal the subsection, substitute:

Agreements

(2) If:

(a) apart from this subsection, an asset of a fund consists of a loan, an investment or an asset that is subject to a lease or lease arrangement, other than an in-house asset; and

(b) the loan, investment, lease or lease arrangement was made as a result of entering into or carrying out an agreement; and

(c) any of the persons who entered into or carried out the agreement was aware that the result of carrying out the agreement would be that:

(i) a loan would be made to, an investment would be made in, or an asset would be subject to a lease or lease arrangement with, a related party of the fund; or

(ii) an investment would be made in a related trust of the fund;

then the asset is taken, for the purposes of this Part, to be a loan to, an investment in, or an asset subject to a lease or lease arrangement with, that related party or related trust, as the case requires.

Definition

(2A) In subsection (2):

agreement includes any arrangement, understanding, promise or undertaking whether express or implied, and whether or not enforceable, or intended to be enforceable, by legal proceedings.

Exceptions

(2B) Subsection (2) does not apply to an investment referred to in paragraph 71(1)(a), (b), (ba), (c) or (h).