336Subordinated debt

336 Subordinated debt (1) A co-operative may incur subordinated debt.

Co-operatives (National Uniform Legislation) Act 2015 215 (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.