Corporations Amendment Regulations 2002 (No. 5) (126 of 2002)

Schedule 3   Amendments commencing on gazettal

[3]   After subregulation 7.1.04 (3)

insert

(4) An arrangement under which:

(a) a party has, or may have, an obligation to buy tangible property (other than Australian or foreign currency) at a price and on a date in the future; and

(b) another party has, or may have, an obligation to sell that property; and

(c) the arrangement does not permit the seller's obligations to be wholly settled by cash, or by set-off between the parties, rather than by delivery of the property; and

(d) neither usual market practice, nor the rules of a licensed market or a licensed CS facility, permits the seller's obligations to be closed out by the matching up of the arrangement with another arrangement of the same kind under which the seller has offsetting obligations to buy;

is not an arrangement to which subregulation (2) applies to the extent only that the arrangement deals with that purchase and sale.

(5) An arrangement under which:

(a) a party has an obligation to buy property; and

(b) another party has an obligation to sell the property;

is not an arrangement to which subregulation (2) applies merely because the arrangement provides for the consideration to be varied by reference to a general inflation index (for example, the Consumer Price Index).

(6) A contract for the future provision of services is not an arrangement to which subregulation (2) applies.

(7) A thing that is described in subsection 764A (1) of the Act, other than paragraph 764A (1) (c), is not an arrangement to which subregulation (2) applies.

(8) Subregulations (4) to (7) apply whether or not a matter mentioned in those subregulations is described in subsection 761D (1) of the Act.