Section 1238B — Corporations Act 2001 (Cth)

References to incurring debts

For the purposes of the application of the property recovery provisions, as those provisions apply subject to item 1 of the table in subsection 1238A(4), a sub‑fund is taken to incur a debt if:

(a) the CCIV incurs the debt; and

(b) the debt is, to any extent, a liability of the sub‑fund.

The sub‑fund incurs the debt at the time the CCIV incurs the debt.

Sourced from the Federal Register of Legislation at 17 May 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au. Verify the current text against the official source before relying on it.

Related sections

s 1237ZC — Vesting of PPSA security interests if collateral not registered within time
s 1238 — Duties owed by directors of corporate director of a CCIV
s 1238A — Applying property recovery provisions to CCIVs
s 1238C — When debts arise in relation to redeemable shares
s 1238D — Applying external administration offences to CCIVs
s 1238E — Interpretation of ceased to carry on business

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