Section 885H — Corporations Act 2001 (Cth)

The source of funds—general

There must be an adequate source of funds available to cover claims made under the compensation arrangements in respect of Division 3 losses and in respect of any other losses covered by the arrangements.

Note 1: For example, the source of funds may consist of:

(a) a fidelity fund; or

(b) insurance arrangements; or

(c) an irrevocable letter of credit.

Note 2: The source of funds does not have to consist of a single thing. It may consist of a combination of different things.

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 885E — The amount of compensation
s 885F — Method of payment of compensation
s 885G — Making and determination of claims
s 885I — Administration and monitoring
s 885J — The losses to be covered—other matters to be taken into account
s 886A — Only one claim in respect of the same loss

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