Corporations Amendment Regulations 2002 (No. 2) (16 of 2002)

Schedule 1   Amendments commencing at 12.01 am (in the Australian Capital Territory) on 11 March 2002

[7]   Regulation 7.1.07

substitute

7.1.07 Specific things that are not financial products: surety bonds

(1) This regulation applies to an arrangement between 2 persons ( person 1 and person 2 ) made in the following circumstances:

(a) person 1 enters into the arrangement in order to meet a requirement of another arrangement between person 1 and a person other than person 2 ( person 3 );

(b) under the arrangement, person 2 undertakes to make a payment to, or perform an obligation for the benefit of, person 3 in circumstances specified as part of the arrangement;

(c) under the arrangement, person 1 is liable to person 2 for any payments made, or liabilities, costs or expenses incurred, by person 2 in making the payment to, or performing the obligation for the benefit of, person 3;

(d) the arrangement does not constitute a financial product under section 764A of the Act.

(2) For paragraph 765A (1) (y) of the Act, the arrangement is not a financial product.

7.1.07A Specific things that are not financial products: rental agreements

(1) This regulation applies to an arrangement between 2 persons ( person 1 and person 2 ) made in the following circumstances:

(a) person 1 leases or rents something from person 2;

(b) under the arrangement, person 1 makes a payment to person 2 to reduce the amount that person 1 would otherwise have to pay to person 2 under the leasing or rental agreement;

(c) the payment relates to the event of an accident or other eventuality affecting the thing that is being leased or rented.

Example

Collision damage waiver insurance for a rental car.

(2) For paragraph 765A (1) (y) of the Act, the arrangement is not a financial product.