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CORPORATIONS ACT 2001 - SECT 763E

What if a financial product is only incidental?

             (1)  If:

                     (a)  something (the incidental product ) that, but for this section, would be a financial product because of this Subdivision is:

                              (i)  an incidental component of a facility that also has other components; or

                             (ii)  a facility that is incidental to one or more other facilities; and

                     (b)  it is reasonable to assume that the main purpose of:

                              (i)  if subparagraph (a)(i) applies--the facility referred to in that subparagraph, when considered as a whole; or

                             (ii)  if subparagraph (a)(ii) applies--the incidental product, and the other facilities referred to in that subparagraph, when considered as a whole;

                            is not a financial product purpose;

the incidental product is not a financial product because of this Subdivision (however, it may still be a financial product because of Subdivision C).

             (2)  In this section:

"financial product purpose" means a purpose of:

                     (a)  making a financial investment; or

                     (b)  managing financial risk; or

                     (c)  making non-cash payments.



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