Commonwealth Numbered Acts

FINANCIAL CORPORATIONS ACT 1974 No. 36 of 1974 - SECT 8

8. (1) Subject to sub-section (2), this Act applies to a corporation if, and
only if, the corporation is a foreign corporation, a trading corporation
formed within the limits of Australia or a financial corporation so formed
and-

   (a)  the sole or principal business activities in Australia of the
        corporation are the borrowing of money and the provision of finance;

   (b)  the sum of the values of such of the assets in Australia of the
        corporation as consist of debts due to the corporation, being debts
        resulting from transactions entered into in the course of the
        provision of finance by the corporation, exceeds-

        (i)    50 per centum; or

        (ii)   if a greater or lesser percentage is prescribed by the
               regulations-the percentage so prescribed,

of the sum of the values of all the assets in Australia of the corporation; or

   (c)  the corporation engages in the provision of finance in the course of
        carrying on in Australia a business (whether or not that business is
        its sole or principal business) of selling goods by retail and the sum
        of the values of such of the assets of the corporation and of any
        corporation that is related to the corporation as consist of debts due
        to the corporation concerned, being debts resulting from transactions
        entered into in the course of the provision of finance by that
        corporation, exceeds-

        (i)    $5,000,000; or

        (ii)   if a greater or lesser amount is prescribed by the
               regulations-the amount so prescribed.

(2) This Act does not apply to a corporation if-

   (a)  the corporation, not being a company, society or association, is
        established for a public purpose by a law of Australia, of a State or
        of a Territory;

   (b)  the corporation is a bank as defined by sub-section 5 (1) of the
        Banking Act 1959-1973;

   (c)  the corporation is a terminating building society;

   (d)  the corporation is a friendly or benefit society registered under a
        law of a State or of a Territory providing for the registration of
        friendly or benefit societies;

   (e)  the corporation is a medical benefits organization or hospital
        benefits organization registered under the National Health Act
        1953-1973;

   (f)  the corporation is registered under the Life Insurance Act 1945-1973;

   (g)  the sole or principal business in Australia of the corporation is
        insurance business as defined by sub-section 3 (1) of the
        Insurance Act 1973;

   (h)  the corporation is authorized by a law of a State or of a Territory to
        act as an executor, administrator and trustee;

   (j)  the sole or principal purpose for which the corporation borrows money
        is to lend money to a corporation or corporations that, by reason of
        sub-section 7 (2) or (3), is not or are not to be taken to be related
        to the first-mentioned corporation but would, but for that
        sub-section, be treated as being so related by reason of sub-section 7
        (1);

   (k)  the sum of the values of all the assets of the corporation and of
        every corporation that is related to the corporation does not exceed-

        (i)    $1,000,000; or

        (ii)   if a greater or lesser amount is prescribed by the
               regulations-the amount so prescribed; or

   (l)  the Treasurer has, by order in writing published in the Gazette,
        exempted the corporation from the application of this Act.

(3) The reference in paragraph (2) (j) to the lending of money to a
corporation does not include a reference to the provision of finance to the
corporation by way of acquiring debts due to the corporation or of purchasing
securities other than securities issued by the corporation.