sec.267What is an exempt short-term debenture

### sec.267 What is an exempt short-term debenture A debenture issued by a public company is an exempt short-term debenture if— the amount repayable under the debenture is repayable within 6 months after it is issued or is not repayable within a fixed or certain period but the amount is later paid or repaid within 6 months after it is issued; and the debenture is not part of an arrangement, the effect of which is to extend the period for repayment of an amount to more than 6 months after it is issued. If a debenture is reissued or renewed, the combined terms of debentures is taken into account when deciding when the amount under the debenture is repayable for subsection (1) . Also, for subsection (1) , debentures subscribed for by a corporation include debentures subscribed for by a related body corporate unless the commissioner decides otherwise. (sec.267-ssec.1) A debenture issued by a public company is an exempt short-term debenture if— the amount repayable under the debenture is repayable within 6 months after it is issued or is not repayable within a fixed or certain period but the amount is later paid or repaid within 6 months after it is issued; and the debenture is not part of an arrangement, the effect of which is to extend the period for repayment of an amount to more than 6 months after it is issued. (sec.267-ssec.2) If a debenture is reissued or renewed, the combined terms of debentures is taken into account when deciding when the amount under the debenture is repayable for subsection (1) . (sec.267-ssec.3) Also, for subsection (1) , debentures subscribed for by a corporation include debentures subscribed for by a related body corporate unless the commissioner decides otherwise. - (a) the amount repayable under the debenture is repayable within 6 months after it is issued or is not repayable within a fixed or certain period but the amount is later paid or repaid within 6 months after it is issued; and - (b) the debenture is not part of an arrangement, the effect of which is to extend the period for repayment of an amount to more than 6 months after it is issued.