Co-operatives National Law (Queensland)
sec.336Subordinated debt
Start here
Get a plain-English read of sec.336
Turn the raw legal text into a practical explanation grounded in Co-operatives National Law (Queensland).
sec.336 Subordinated debt
A co-operative may incur subordinated debt. 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— equally with the claim of another creditor who is a party to a similar agreement; and 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. 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. (sec.336-ssec.1) A co-operative may incur subordinated debt. (sec.336-ssec.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— equally with the claim of another creditor who is a party to a similar agreement; and 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. (sec.336-ssec.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.
- (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.