sec.5Transferring liabilities

sec.5 Transferring liabilities

This section applies to a liability of Powerlink, in existence immediately before the transfer day for a transfer schedule, to the extent the liability arose as a result of Powerlink— acquiring, owning or maintaining an interest in an asset identified, immediately before the transfer day, in the transfer schedule; or being party to an instrument identified, immediately before the transfer day, in the transfer schedule. This section also applies to a liability of Powerlink if, immediately before the transfer day, the transfer schedule identifies the liability. However, this section does not apply to a liability mentioned in subsection (1) or (2) to the extent that, immediately before the transfer day, the liability— has been discharged or otherwise satisfied; or is excluded from transfer under this regulation by an exclusion schedule. See also section 8 . Powerlink is released from the liability, and the liability is assumed by the recipient entity for the liability, on the transfer day. Powerlink and the recipient entity must do all things necessary to enable the liability to be assumed by the recipient entity under subsection (4) . For the purpose of accounting— Powerlink must treat— the assumption of the liability by the recipient entity as a contribution by an owner that is to be considered as an increase in contributed equity; and the value of the liability as being the value of the liability as recorded in the accounts of Powerlink for the last day of the month immediately before the month in which the transfer day occurs; and the recipient entity must treat— the assumption of the liability by the recipient entity as a distribution to an owner that is to be considered as a redemption of contributed equity; and the value of the liability as being the value of the liability as recorded in the accounts of Powerlink for the last day of the month immediately before the month in which the transfer day occurs. (sec.5-ssec.1) This section applies to a liability of Powerlink, in existence immediately before the transfer day for a transfer schedule, to the extent the liability arose as a result of Powerlink— acquiring, owning or maintaining an interest in an asset identified, immediately before the transfer day, in the transfer schedule; or being party to an instrument identified, immediately before the transfer day, in the transfer schedule. (sec.5-ssec.2) This section also applies to a liability of Powerlink if, immediately before the transfer day, the transfer schedule identifies the liability. (sec.5-ssec.3) However, this section does not apply to a liability mentioned in subsection (1) or (2) to the extent that, immediately before the transfer day, the liability— has been discharged or otherwise satisfied; or is excluded from transfer under this regulation by an exclusion schedule. See also section 8 . (sec.5-ssec.4) Powerlink is released from the liability, and the liability is assumed by the recipient entity for the liability, on the transfer day. (sec.5-ssec.5) Powerlink and the recipient entity must do all things necessary to enable the liability to be assumed by the recipient entity under subsection (4) . (sec.5-ssec.6) For the purpose of accounting— Powerlink must treat— the assumption of the liability by the recipient entity as a contribution by an owner that is to be considered as an increase in contributed equity; and the value of the liability as being the value of the liability as recorded in the accounts of Powerlink for the last day of the month immediately before the month in which the transfer day occurs; and the recipient entity must treat— the assumption of the liability by the recipient entity as a distribution to an owner that is to be considered as a redemption of contributed equity; and the value of the liability as being the value of the liability as recorded in the accounts of Powerlink for the last day of the month immediately before the month in which the transfer day occurs.