CORPORATIONS ACT 2001 - SECT 885H The source of funds--general

CORPORATIONS ACT 2001 - SECT 885H

    There must be an adequate source of funds available to cover claims made under the compensation arrangements in respect of Division   3 losses and in respect of any other losses covered by the arrangements.

Note 1:   For example, the source of funds may consist of:

(a)   a fidelity fund; or

(b)   insurance arrangements; or

(c)   an irrevocable letter of credit.

Note 2:   The source of funds does not have to consist of a single thing. It may consist of a combination of different things.