Subordinated debt
249 Subordinated debt
In this section —
subordinated debt means debt incurred under an agreement under which, in the event of the winding‑up of the co‑operative, a claim of the creditor against the co‑operative in relation to the debt is to rank in priority —
equally with the claim of another creditor who is a party to a similar agreement; and
except as provided by paragraph (a), after the claims of another creditor of the co‑operative and before the claims of members to repayment of share capital in the co‑operative.
A co‑operative may incur subordinated debt.
An agreement under which subordinated debt is incurred has effect despite the provisions of the Corporations Act Part 5.6 Division 6, as applied under Part 12 Division 3 of this Act.
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