Section 1234A — Corporations Act 2001: Requirement for segregated application of assets of sub-funds

(1) The assets of a sub-fund of a CCIV must not be applied, or dealt with, whether directly or indirectly: (a) subject to paragraph (b), for any purpose other than a purpose covered by section 1234B; or (b) for a purpose prescribed by regulations made for the purposes of this paragraph. Note: For the consequences of a contravention of this requirement, see section 1234F. (2) Subsection (1) does not apply to: (a) money or property to which section 1234 applies; or (b) assets of a sub-fund of the CCIV, to the extent the assets consist of property to which section 1233K (about property that has to be converted into money etc.) applies. Note: For paragraph (b), see instead section 1234C. (3) The assets of 2 or more sub-funds of a CCIV must not be applied jointly to acquire a single item of property of the CCIV. Note: A single item of property that forms part of the assets of 2 or more sub-funds must be converted into money or other fungible property: see section 1233K. Liquidators (4) However, a liquidator or provisional liquidator of a sub-fund of a CCIV may: (a) make a disposition of assets of the sub-fund that is an exempt disposition for the purposes of subsection 468(2), as that subsection applies to the sub-fund under Division 5 of Part 8B.6; or (b) disclaim property of a sub-fund under Division 7A of Part 5.6, as that Division applies to the sub-fund under Division 5 of Part 8B.6.