(1) The assets of a sub-fund of a CCIV must not be applied, or dealt with, whether directly or indirectly:
(a) subject to paragraph (b), for any purpose other than a purpose covered by section 1234B; or
(b) for a purpose prescribed by regulations made for the purposes of this paragraph.
Note: For the consequences of a contravention of this requirement, see section 1234F.
(2) Subsection (1) does not apply to:
(a) money or property to which section 1234 applies; or
(b) assets of a sub-fund of the CCIV, to the extent the assets consist of property to which section 1233K (about property that has to be converted into money etc.) applies.
Note: For paragraph (b), see instead section 1234C.
(3) The assets of 2 or more sub-funds of a CCIV must not be applied jointly to acquire a single item of property of the CCIV.
Note: A single item of property that forms part of the assets of 2 or more sub-funds must be converted into money or other fungible property: see section 1233K.
(4) However, a liquidator or provisional liquidator of a sub-fund of a CCIV may:
(a) make a disposition of assets of the sub-fund that is an exempt disposition for the purposes of subsection 468(2), as that subsection applies to the sub-fund under Division 5 of Part 8B.6; or
(b) disclaim property of a sub-fund under Division 7A of Part 5.6, as that Division applies to the sub-fund under Division 5 of Part 8B.6.