93JDirect infrastructure borrowing—requirement relating to spending of borrowed money

#### 93J Direct infrastructure borrowing—requirement relating to spending of borrowed money \[Spending requirement\] (1) For a borrowing to be a direct infrastructure borrowing, the borrower must, at the time of the borrowing, intend to use the borrowed money only: (a) by spending it on: (i) the construction of one or more infrastructure facilities; or (ii) subject to subsection (2), the construction or acquisition of one or more related facilities; or (iii) subject to subsection (3), the payment of interest, or of amounts in the nature of interest, on a direct infrastructure borrowing; and (b) if it is unable to be spent immediately after it is borrowed—by investing it in a prescribed investment until it is. \[Spending on related facilities\] (2) Spending money on the construction or acquisition of a related facility only qualifies under subsection (1) if: (a) the borrower also intends to spend some of the borrowed money as mentioned in paragraph (1)(a) on one or more of the infrastructure facilities to which the related facility relates; or (b) the following conditions are satisfied: (i) the borrower already owns the infrastructure facility or facilities to which the related facility relates; and (ii) the requirements of section 93K are satisfied in relation to that infrastructure facility or those infrastructure facilities (assuming the money were also to be spent on them) as well as the related facility at the time of the borrowing; and (iii) the borrower intends to begin the construction, or make the acquisition of the related facility, not later than 10 years after: (A) if the borrower constructed the infrastructure facility or facilities to which it relates—the beginning of construction of the infrastructure facility, or the first of the infrastructure facilities, to which it relates; or (B) if the borrower acquired the infrastructure facility or facilities to which it relates—the time of acquisition of the infrastructure facility, or the first of the infrastructure facilities, to which it relates. \[Spending on the payment of interest\] (3) Spending money on the payment of interest, or of amounts in the nature of interest, only qualifies under subsection (1): (a) to the extent that the interest or those amounts relate to that part of the period of the borrowing that occurs during the period (the construction period) in which any of the facilities referred to in paragraph (1)(a), or any of the facilities referred to in paragraph (1)(b) that are being constructed, are under construction; and (b) if the payment is made during the construction period. \[Exclusions\] (4) A borrowing does not qualify for the purposes of subsection (1) if the borrower intends to spend the money borrowed: (a) on entering into or acquiring a lease; or (b) on acquiring land on which there is a building or structure that is to form part of the infrastructure facility or the related facility concerned; or (c) on refinancing a loan. \[Facility can be part of or related to other facilities\] (5) It does not matter for the purposes of subsection (1) if the infrastructure facility is to be part of or related to any other infrastructure facility of any person. \[acquisition includes dismantling etc.\] (6) In paragraph (1)(b), acquisition includes dismantling, transportation or installation in connection with the acquisition.