Section 1233L — Corporations Act 2001: Meaning of liabilities—sub-fund of a CCIV

(1) The liabilities of a sub-fund of a CCIV at a particular time are the following: (a) liabilities of the CCIV that relate solely to the business of the sub-fund; (b) liabilities of the CCIV not covered by paragraph (a), to the extent that it is fair and reasonable in the circumstances to allocate the liability to the sub-fund at the time having regard to the following matters: (i) the extent to which the liability, when it arose, related to the business of the sub-fund; (ii) the extent to which assets of the sub-fund, and assets of other sub-funds, of the CCIV have been applied to meet the liability; (iii) the regulations (if any) made for the purposes of subsection (4). Note: Section 1233A is about references to the liabilities of a CCIV. Effect of an allocation determination (2) Despite subsection (1), if: (a) a particular proportion of a liability of a CCIV is allocated to a sub-fund of the CCIV at a time under a determination made under section 1233M (including a determination as varied under section 1233N); and (b) the determination is operative at the time (see subsection 1233M(4)); that proportion of the liability is taken to form part of the liabilities of the sub-fund at that time. Effect of a Court order about an arrangement or reconstruction (3) Despite subsections (1) and (2), the liabilities of a sub-fund of a CCIV: (a) include liabilities that, in accordance with a Court order made under section 1235F (about arrangements and reconstructions of sub-funds), are to be liabilities of the sub-fund; and (b) do not include liabilities that, in accordance with an order made under that section, are no longer to be liabilities of the sub-fund. Regulations (4) The regulations may provide for and in relation to matters to be considered in determining the extent to which a liability of a CCIV forms part of the liabilities of a sub-fund of the CCIV.