Section 283AB — Corporations Act 2001 (Cth)

(1) The trust deed must provide that the following are held in trust by the trustee for the benefit of the debenture holders:

(a) the right to enforce the borrower’s duty to repay;

(b) any charge or security for repayment;

(c) the right to enforce any other duties that the borrower and any guarantor have under:

(i) the terms of the debentures; or

(ii) the provisions of the trust deed or this Chapter.

Note: For information about the duties that the borrower and any guarantor body have under this Chapter, see sections 283BB to 283CE.

(2) An offence based on subsection (1) is an offence of strict liability.

Note: For strict liability, see section 6.1 of the Criminal Code.

Related sections

• s 260DA — Application of this Part to MCI mutual entities
• s 260E — General duties still apply
• s 283AA — Requirement for trust deed and trustee
• s 283AC — Who can be a trustee
• s 283AD — Existing trustee continues to act until new trustee takes office
• s 283AE — Replacement of trustee

Research how courts apply s 283AB

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