110Arrangements that are not to be treated as financial security

110 Arrangements that are not to be treated as financial security

(1) For the purposes of paragraph 117(4)(b) of the Act, the following kinds of arrangements are not to be treated as financial security in relation to a licence for the purposes of section 117 of the Act: (a) an arrangement involving self‑insurance; (b) an arrangement under which the Commonwealth is a beneficiary of a trust; (c) a guarantee provided by a related body corporate (within the meaning of the Corporations Act 2001) of the licence holder. (2) For the purposes of paragraph 117(4)(b) of the Act, an arrangement is not to be treated as financial security for the purposes of section 117 of the Act if any of the following applies to the arrangement: (a) the arrangement does not limit the ability of persons other than the Commonwealth to recover amounts from financial security provided under the arrangement; (b) it is not highly certain that the Commonwealth would be able to recover amounts under the arrangement when required; (c) the terms of the arrangement are unclear.