Section 563AAACorporations Act 2001 (Cth)

Redemption of debentures

Priorities

(1) Debentures of a company under a trust deed that are issued in place of debentures under that deed that have been redeemed have the priority that the redeemed debentures would have had if they had never been redeemed.

Deposit of debentures to secure advance

(2) Debentures of a company are not to be taken to be redeemed merely because:

(a) the debentures secure advances on current account or otherwise; and

(b) the company’s account ceases to be in debit while those debentures remain available.

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.

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