sec.249What is an advance

### sec.249 What is an advance An advance is the provision or obtaining of funds by way of financial accommodation by— a loan; or a bill facility that is 1 or more agreements, understandings or arrangements as a consequence of which a bill of exchange or promissory note— is drawn, accepted, endorsed or made; or is held, negotiated or discounted. Subsection (1) (b) applies whether or not the funds are obtained from— the person who draws, accepts, endorses or makes the bill of exchange or promissory note; or a person who is a party to any of the agreements, understandings or arrangements. An advance includes a contingent liability under section 259 . However, the term does not include an amount provided or obtained on the security of a mortgage for— insurance of the secured property against fire; or keeping or effecting a policy of life insurance; or payment of duty for the security or any loan other than a current account secured by the mortgage. (sec.249-ssec.1) An advance is the provision or obtaining of funds by way of financial accommodation by— a loan; or a bill facility that is 1 or more agreements, understandings or arrangements as a consequence of which a bill of exchange or promissory note— is drawn, accepted, endorsed or made; or is held, negotiated or discounted. (sec.249-ssec.2) Subsection (1) (b) applies whether or not the funds are obtained from— the person who draws, accepts, endorses or makes the bill of exchange or promissory note; or a person who is a party to any of the agreements, understandings or arrangements. (sec.249-ssec.3) An advance includes a contingent liability under section 259 . (sec.249-ssec.4) However, the term does not include an amount provided or obtained on the security of a mortgage for— insurance of the secured property against fire; or keeping or effecting a policy of life insurance; or payment of duty for the security or any loan other than a current account secured by the mortgage. - (a) a loan; or - (b) a bill facility that is 1 or more agreements, understandings or arrangements as a consequence of which a bill of exchange or promissory note— (i) is drawn, accepted, endorsed or made; or (ii) is held, negotiated or discounted. - (i) is drawn, accepted, endorsed or made; or - (ii) is held, negotiated or discounted. - (i) is drawn, accepted, endorsed or made; or - (ii) is held, negotiated or discounted. - (a) the person who draws, accepts, endorses or makes the bill of exchange or promissory note; or - (b) a person who is a party to any of the agreements, understandings or arrangements. - (a) insurance of the secured property against fire; or - (b) keeping or effecting a policy of life insurance; or - (c) payment of duty for the security or any loan other than a current account secured by the mortgage.