Quarterly reports

(1) Within 1 month after the end of each quarter, the borrower must:

(a)

give the trustee a quarterly report that sets out the information required by subsections (4), (5) and (6); and

(b)

lodge a copy of the report with ASIC (see section 351).

First quarter

(2) The first quarter is the period of 3 months ending on a day fixed by the borrower, by written notice to the trustee. The day must be less than 6 months after the first issue of a debenture under the trust deed.

Subsequent quarters

(3) Each of the subsequent quarters are periods of 3 months. The trustee may allow a particular quarter to be a period of less than 3 months if the trustee is satisfied that special circumstances justify doing so.

Content of quarterly report

(4) The report for a quarter must include details of:

(a)

any failure by the borrower and each guarantor to comply with the terms of the debentures or the provisions of the trust deed or this Chapter during the quarter; and

(b)

any event that has happened during the quarter that has caused, or could cause, 1 or more of the following:

(i)

any amount deposited or lent under the debentures to become immediately payable;

(ii)

the debentures to become immediately enforceable;

(iii)

any other right or remedy under the terms of the debenture or provisions of the trust deed to become immediately enforceable; and

(c)

any circumstances that have occurred during the quarter that materially prejudice:

(i)

the borrower, any of its subsidiaries, or any of the guarantors; or

(ii)

any security or charge included in or created by the debentures or the trust deed; and

(d)

any substantial change in the nature of the business of the borrower, any of its subsidiaries, or any of the guarantors that has occurred during the quarter; and

(e)

any of the following events that happened in the quarter:

(i)

the appointment of a guarantor;

(ii)

the cessation of liability of a guarantor body for the payment of the whole or part of the money for which it was liable under the guarantee;

(iii)

a change of name of a guarantor (if this happens, the report must also disclose the guarantor's new name); and

(f)

the net amount outstanding on any advances at the end of the quarter if the borrower has created a charge where:

(i)

the total amount to be advanced on the security of the charge is indeterminate; and

(ii)

the advances are merged in a current account with bankers, trade creditors or anyone else; and

(g)

any other matters that may materially prejudice any security or the interests of the debenture holders.

Note: Paragraph (f)—the borrower has a duty to inform the trustee about charges as they are created (see section 283BE).

(5) If the borrower has deposited money with, or lent money to, a related body corporate during the quarter, the report must also include details of:

(a)

the total of the money deposited with, or lent to, the related body corporate during the quarter (see subsection (7)); and

(b)

the total amount of money owing to the borrower at the end of the quarter in respect of the deposits or loans to the related body corporate.