Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) A * non - share dividend paid by an ADI (an authorised deposit - taking institution) for the purposes of the Banking Act 1959 is unfrankable if:
(a) the ADI is an Australian resident; and
(b) the non - share dividend is paid in respect of a * non - share equity interest that:
(ii) in combination with one or more * schemes that are * related schemes to the scheme under which the interest arises;
forms part of the ADI's Tier 1 capital either on a solo or consolidated basis (within the meaning of the * prudential standards); and
(c) the non - share equity interest is issued at or through a * permanent establishment of the ADI in a * listed country; and
(d) the funds from the issue of the non - share equity interest are raised and applied solely for one or more purposes permitted under subsection (2) in relation to the non - share equity interest.
(2) The permitted purposes in relation to the * non - share equity interest (the relevant interest ) are the following:
(a) the purpose of the business of the ADI carried on at or through the permanent establishment other than the transfer of funds directly or indirectly to:
(i) the Australian head office of the permanent establishment; or
(ii) any * connected entity of the ADI that is an Australian resident; or
(iii) a permanent establishment of the ADI, or of a connected entity of the ADI, located in Australia;
(ii) a non - share equity interest;
that is issued, before the relevant interest is issued, at or through the permanent establishment and is held by a connected entity of the ADI that is an Australian resident;
(c) the purpose of returning funds to:
(i) the Australian head office of the permanent establishment; or
(ii) a permanent establishment of the ADI or of a connected entity of the ADI, located in Australia;
if the funds are contributed, before the relevant interest is
issued, for use in the business of the ADI carried on at or through the
permanent establishment.