336Subordinated debt

#### 336 Subordinated debt 336 Subordinated debt > > (1) A co-operative may incur subordinated debt. > > > (2) Subordinated debt is debt incurred under an agreement under which, in the event of the winding up of the co-operative, a claim of the creditor against the co-operative for the debt is to rank in priority— > > > > > (a) equally with the claim of another creditor who is a party to a similar agreement; and > > > > > (b) except as provided by paragraph (a)—after the claims of another creditor of the co-operative and before the claims of members to repayment of share capital in the co-operative. > > > (3) An agreement referred to in subsection (2) has effect despite the provisions of Division 6 of Part 5.6 of the Corporations Act as applying under this Law.