Tasmanian Consolidated Acts Tasmanian Consolidated Acts
(1) A cooperative may incur subordinated debt.
(2) Subordinated debt is debt incurred under an agreement under which, in the event of the winding-up of the cooperative, any claim of the creditor against the cooperative in respect of the debt is to rank in priority –
(a) equally with the claim of any other creditor who is a party to a similar agreement; and
(b) except as provided by paragraph (a), after the claims of any other creditor of the cooperative and before the claims of members to repayment of any share capital in the cooperative.
(3) An agreement referred to in subsection (2) has effect despite the provisions of Division 6 of Part 5.6 of the Corporations Act (as applied under Division 3 of Part 12 of this Act).