25FModifications—ADI in relation to carried over instrument

#### 25F Modifications—ADI in relation to carried over instrument For the purposes of paragraph 110(1)(c) of the Act, section 38 of the Act applies to an ADI in relation to a carried over instrument as if it were modified by substituting the following section: 38 When a license may be granted—ADI in relation to carried over instrument (1) ASIC must grant a licence to an ADI in relation to a carried over instrument if (and must not grant a licence unless) the requirements mentioned in subsection (2), (3) or (4) are met. (2) For subsection (1), the requirements are, if the ADI: (a) is a credit provider, lessor, mortgagee or beneficiary of a guarantee in relation to a carried over instrument (engages in the first credit activity) immediately before 1 July 2010; and (b) intends to engage in a credit activity (the second credit activity) other than the first credit activity on or after 1 July 2010; and (c) applies under section 36 for a licence to engage in the first credit activity and the second credit activity; and (d) includes a statement in the application (in accordance with the requirements of the approved form) to the effect that the ADI will, if granted the licence, comply with its obligations as a licensee. (3) For subsection (1), the requirements are, if the ADI: (a) is a credit provider, lessor, mortgagee or beneficiary of a guarantee in relation to a carried over instrument immediately before 1 July 2010; and (b) does not intend to engage in a credit activity other than in relation to a carried over instrument on or after 1 July 2010; and (c) applies under section 36 for a licence to engage in a credit activity in relation to a carried over instrument; and (d) includes a statement in the application (in accordance with the requirements of the approved form) to the effect that the ADI will, if granted the licence, comply with its obligations as a licensee. (4) For subsection (1), the requirements are, if the ADI: (a) was not a credit provider, lessor, mortgagee or beneficiary of a guarantee in relation to a carried over instrument immediately before 1 July 2010; and (b) applies under section 36 for a licence; and (c) includes a statement in the application (in accordance with the requirements of the approved form) to the effect that the ADI will, if granted the licence, comply with its obligations as a licensee. (5) The license must only authorise the ADI to engage in credit activities that equate (as closely as possible) to the credit activities in relation to which the application was made.