(1)

For subsection 1284 (3) of the Act:

(a)

if a liquidator ceases to be registered as a liquidator; or

(b)

if a liquidator of a specified body corporate ceases to be registered as a liquidator of that specified body corporate; or

(c)

if there is a reduction in the potential liability of a liquidator in relation to which a security was lodged by the liquidator; or

(d)

in such other circumstances as ASIC permits in a particular case;

ASIC may, on the application of the liquidator or any person who has entered into the security as surety:

(e)

discharge the security in whole or part; or

(f)

return the security in whole or part; or

(g)

release the surety in whole or in part.

(2)

ASIC must not exercise a power under subregulation (1) until 3 months after the date on which a notice in accordance with Form 904 is published:

(a)

in a newspaper circulating generally in Australia; and

(b)

if ASIC requires — in a newspaper circulating generally in the State or Territory of the principal place at which the liquidator practised, or, in the case of a liquidator of a specified body corporate, the principal place at which the functions of the liquidator of the specified body were performed:

(i)

asking for particulars in writing of a claim in respect of the security to which the application relates; and

(ii)

stating a date on or before which any claim is to be made.

(3)

A notice must be published by, and at the expense of, the person making the application.

(4)

If a liability may be imposed on a surety in relation to a claim:

(a)

in response to a notice under subregulation (2); or

(b)

accepted by ASIC as a proper claim;

that surety:

(c)

may; and

(d)

on the request of the liquidator or liquidator of a specified body corporate, must;

apply to ASIC for directions:

(e)

concerning the manner in which the security is to be dealt with; and

(f)

whether the surety should be released wholly or in part.

(5)

If a surety's liability under a security maintained with ASIC is substantially in excess of the surety's liability under all claims mentioned in subregulation (4), ASIC may:

(a)

direct that the instrument under which the surety's liability arises be varied; or

(b)

return to the surety the proportion of the security that exceeds the surety's liability under all claims mentioned in subregulation (4); or

(c)

refer any matter in dispute to a court, or an arbitrator, for determination; or

(d)

release the surety wholly or in part.