Commonwealth Consolidated Regulations

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CORPORATIONS REGULATIONS 2001 - REG 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, other than a derivative.

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


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