Western Australian Current Acts Western Australian Current Acts (1) In this section
—
subordinated debt means debt incurred under an
agreement under which, in the event of the winding-up of the co-operative, a
claim of the creditor against the co-operative in relation to the debt is to
rank in priority —
(a)
equally with the claim of another creditor who is a party to a similar
agreement; and
(b)
except as provided by paragraph (a), after the claims of another creditor of
the co-operative and before the claims of members to repayment of share
capital in the co-operative.
(2) A co-operative may
incur subordinated debt.
(3) An agreement under
which subordinated debt is incurred has effect despite the provisions of the
Corporations Act Part 5.6 Division 6, as applied under Part 12 Division 3 of
this Act.