Corporations Act 2001

CHAPTER 2L - DEBENTURES  

PART 2L.2 - DUTIES OF BORROWER  

SECTION 283BE  

283BE   DUTY TO INFORM TRUSTEE ABOUT SECURITY INTERESTS  

If the borrower creates a security interest, it must:

(a) give the trustee written details of the security interest within 21 days after it is created; and

(b) if the total amount to be advanced on the security of the security interest is indeterminate and the advances are not merged in a current account with bankers, trade creditors or anyone else - give the trustee written details of the amount of each advance within 7 days after it is made.

Note: If the advances are merged in a current account the borrower must give the trustee the details in the quarterly report (see subsection 283BF(4) ).