Co-operatives National Law (NSW)
336Subordinated debt
Start here
Get a plain-English read of 336
Turn the raw legal text into a practical explanation grounded in Co-operatives National Law (NSW).
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.