Corporations Act 2001

CHAPTER 2L - DEBENTURES  

PART 2L.3 - DUTIES OF GUARANTOR  

SECTION 283CA  

283CA   DUTIES OF GUARANTOR  
If a borrower is required to enter into a trust deed under section 283AA in relation to debentures, a guarantor in respect of the debentures has the duties imposed by this Part.

SECTION 283CB  

283CB   GENERAL DUTIES  
The guarantor must:


(a) carry on and conduct its business in a proper and efficient manner; and


(b) make all of its financial and other records available for inspection by:


(i) the trustee; or

(ii) an officer or employee of the trustee authorised by the trustee to carry out the inspection; or

(iii) a registered company auditor appointed by the trustee to carry out the inspection;
and give them any information, explanations or other assistance that they require about matters relating to those records.

SECTION 283CC  

283CC   DUTY TO INFORM TRUSTEE ABOUT SECURITY INTERESTS  


If the guarantor 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, give the trustee written details of:


(i) the amount of each advance made within 7 days after it is made; or

(ii) where the advances are merged in a current account with bankers, trade creditors or anyone else - the net amount outstanding on the advances at the end of every 3 months.

SECTION 283CD  

283CD   EXCEPTIONS TO GUARANTOR ' S DUTY TO INFORM TRUSTEE  


Section 283CC does not apply in respect of:


(a) the guarantor, while:


(i) it is under external administration; or

(ii) a receiver, or a receiver and manager, of property of the guarantor has been appointed and has not ceasedto act under that appointment; or


(b) a security interest in PPSA retention of title property.

SECTION 283CE  

283CE   OFFENCES FOR FAILURE TO COMPLY WITH STATUTORY DUTIES  
The guarantor commits an offence if it intentionally or recklessly contravenes paragraph 283CB(b) or section 283CC.