Co-operatives National Law (Queensland)
sec.346Priority of CCUs on winding up
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sec.346 Priority of CCUs on winding up
On a winding up of a co-operative, a debt owed to a person as the holder or former holder of a CCU issued by the co-operative is to rank for priority of payment in accordance with the terms of issue of the CCU. Such a debt may rank as a secured debt if it is secured but if it is unsecured may not rank in priority to other unsecured debts. Such a debt may rank equally with or behind unsecured debts and (if the debt ranks behind unsecured debts) may rank in priority to, equally with or behind debts due to contributories. (sec.346-ssec.1) On a winding up of a co-operative, a debt owed to a person as the holder or former holder of a CCU issued by the co-operative is to rank for priority of payment in accordance with the terms of issue of the CCU. (sec.346-ssec.2) Such a debt may rank as a secured debt if it is secured but if it is unsecured may not rank in priority to other unsecured debts. (sec.346-ssec.3) Such a debt may rank equally with or behind unsecured debts and (if the debt ranks behind unsecured debts) may rank in priority to, equally with or behind debts due to contributories.