Effect of unsecured loan on value of assets
52ZZU Effect of unsecured loan on value of assets
For the purposes of the application of this Subdivision to a particular individual and a particular company or trust, if:
the company or trust is the borrower under a loan; and
the loan is not secured by a charge or encumbrance over one or more of the assets of the company or trust;
the Commission may, by writing, determine that the value of a specified asset of the company or trust is to be reduced by the whole, or a specified part, of the amount of the loan.
A determination under subsection (1) has effect accordingly.
In making a determination under subsection (1), the Commission must comply with any relevant decision‑making principles.
This Act’s bill:Second reading speech
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