Australian Securities and Investments Commission Class Order [Co 00/0174] (Cth)

Australian Securities and Investments Commission

Corporations Law — Subsection 741(1)

Exemption and Declaration

Pursuant to paragraph 741(1)(a) of the Corporations Law (Law) the Australian Securities and Investments Commission (ASIC) hereby exempts the class of persons mentioned in Schedule A in the case mentioned in Schedule B from sections 710, 711 and 713 of the Law only to the extent that those provisions may require the interest rate and term of any available debentures to be specified in a prospectus used for the issue of debentures on the following conditions and for so long as they are met:

1.    the prospectus clearly and prominently:

(a)   explains how a prospective applicant may ascertain the interest rate and term of each debenture offered at any time; and

(b)   advises the applicant to confirm the currency of any interest rate prior to completing an application;

2.    the means by which a prospective applicant may ascertain that term and interest rate are simple and involve no charge and little inconvenience to them, having regard to the kinds of persons likely to consider applying for the debentures;

3.    any change in the term or interest rate of an available debenture is advertised in any media in which interest rates and changes in interest rates have been regularly advertised and notified promptly to each person from whom a copy of the prospectus is available who regularly processes applications for debentures pursuant to the prospectus;

4.    the application form makes provision for the applicant to specify or select the interest rate and term applicable to the debenture for which application is made; and

5.    the prospectus clearly explains the applicant's rights to a refund if the application form incorrectly specifies the interest rate or term for the deposit.

And pursuant to paragraph 741(1)(b) of the Law, ASIC hereby declares that Chapter 6D of the Law applies to each person in the class of persons mentioned in Schedule A in the case mentioned in Schedule B as if a new section 725A was inserted as follows:

“725A  Incorrectly-Completed Application for Debentures

(1)     If a body offers debentures of the body for issue and an application is received which, as completed by the relevant applicant:

(a)   does not specify an interest rate, an amount or a term; or

(b)   specifies an interest rate which is not the current interest rate for deposits of the amount and the term specified by the applicant in the application, unless:

(i)      the interest rate is higher than the current interest rate; and

(ii)      the body elects to issue the debentures the subject of the application to the applicant at that higher interest rate,

the body must deal with the application under subsection (2).

(2)     The body must either:

(a)   repay the money received by it from the applicant; or

(b)   give the applicant:

(i)      a notice that informs them of the error in their application, and that clearly explains the correct information and their rights under this section; and

(ii)      1 month to withdraw their application and be repaid; or

(c)   issue the debentures to the applicant at the current interest rate and give them:

(i)      the notice referred to in subparagraph (b)(i); and

(ii)      1 month to withdraw their application and be repaid.

(3)        For the purposes of this section “current interest rate” means the interest rate offered by the body for debentures of the appropriate amount and term on the day that the application is received by it.”

SCHEDULE A

Each body which in the ordinary course of business offers debentures of the body for issue.

SCHEDULE B

Any offer for issue of debentures of the body having a term of not more than five years arising out of a prospectus lodged on or after the CLERP Commencement Date which refers to and adopts this instrument.

Interpretation

In this instrument “CLERP Commencement Date” means the time at which Schedule 1 of the Corporate Law Economic Reform Program Act 1999 commences.

Dated the 15th day of February 2000

Signed by Brendan Byrne

as a delegate of the Australian Securities and Investments Commission