South Australian Consolidated Regulations

CO-OPERATIVES REGULATIONS 1997 - REG 5

5—Definition of debenture

The following classes of documents are prescribed as exempt documents for the purposes of paragraph (c) of the definition of "debenture" in section 4(1) of the Act:

            (a)         a passbook or other document—

                  (i)         that contains all or some of the terms and conditions pursuant to which deposits are accepted by, or withdrawn from, a co-operative; and

                  (ii)         that acknowledges the receipt of a deposit with a co-operative; and

                  (iii)         that enables further deposits to be made at any time adding to the balance of an existing deposit; and

                  (iv)         that enables the withdrawal of the whole or part of the balance of a deposit, whether at call or on the giving of a fixed period of notice; and

                  (v)         that acknowledges the amount of the withdrawal and the balance remaining;

            (b)         a document acknowledging a debt incurred by a co-operative—

                  (i)         in the ordinary course of carrying on so much of a business as neither comprises, nor forms part of, a business of borrowing money and providing finance; and

                  (ii)         in respect of money that is or may be deposited with or lent to the co-operative by a person in the ordinary course of a business carried on by the co-operative;

            (c)         a document that is issued by a company and that constitutes evidence of a debt owed by the company to a co-operative that is a holding company (within the meaning of the Corporations Act) of the company;

            (d)         a document that is issued by a co-operative and that constitutes evidence of a debt owed by the co-operative to a body corporate that is a subsidiary of the co-operative.