s 75 Duty of borrower to give trustee and Commission quarterly reports
(1) A borrower shall, within one month after the end of each quarter— (a) deliver to the trustee a quarterly report that sets out the information required by subsections (3), (4), (5) and (7); (b) lodge a copy of the report with the Registrar; and (c) deliver a copy of the report to the Commission. (2) For the purpose of this section— (a) the first quarter shall be a period of three months ending on a day fixed by the borrower by written notice to the trustee, provided that the day fixed shall be less than six months after the first issue of a debenture under the trust deed; and (b) each of the subsequent quarters shall be for periods of three months, or for such shorter time as the trustee may allow in special circumstances. (3) The report for a quarter shall include details of— (a) any breach of any limitations on the amount the borrower may borrow; (b) any failure by the borrower and each guarantor to comply with the terms, provisions or covenants of the debenture or the trust deed or contravention of the provisions of this Act during the quarter; (c) any event that has happened during the quarter that has caused, or could cause, one or more of the following: (i) any amount secured or payable under the debenture to become immediately payable; (ii) the debenture to become immediately enforceable; (iii) any other right or remedy under the terms, provisions or covenants of the debenture or the trust deed to become immediately enforceable; (d) any circumstance that has occurred during the quarter that would materially prejudice— (i) the borrower, any of its subsidiaries, or any of the guarantors, as the case may be; or (ii) any security or charge included in or created by the debenture or the trust deed; (e) any substantial change in the nature of the business of the borrower, any of its subsidiaries or its guarantors, as the case may be, that has occurred during the quarter; (f) any of the following events that has happened in the quarter: (i) the appointment of a guarantor; (ii) the cessation of liability of a guarantor for the payment of the whole or part of the moneys for which it was liable under the guarantee; or (iii) a change of name of a guarantor; (g) the net amount outstanding on any advances at the end of the quarter if the borrower has created a charge where— (i) the total amount to be advanced on the security of the charge is indeterminate; and (ii) the advances are merged in a current account with bankers, trade creditors or any other person; and (h) any other matter that may materially prejudice the interests of debenture holders. (4) If money is owed to a borrower during the quarter by a related corporation of the borrower, not being such amounts that the borrower deposits with a licensed institution in the normal course of the borrower’s business, the report must also include details of— (a) the total amount owing by the related corporation during the quarter; and (b) the total amount owing by the related corporation at the end of the quarter. (5) If a borrower has assumed a liability of a related corporation during the quarter, the report shall include details of the extent of the liability assumed during the quarter and the extent of liability as at the end of the quarter. (6) For purposes of subsections (4) and (5), the report— (a) shall distinguish between amounts owing and assumptions of liability that are secured and those that are unsecured; and (b) may exclude any deposit, loan or assumption of liability on behalf of the related corporation if it has— (i) guaranteed the repayment of the debentures of the borrower; and (ii) secured the guarantee by a charge over all of its property in favour of the trustee for the holders of the debentures of the borrower. (7) If a prospectus issued in connection with an issue of, offer for subscription or purchase of, or an invitation to subscribe for or purchase, any debenture includes a statement relating to a particular purpose or project for which moneys received by a person in response to the issue, offer or invitation are to be applied, the report shall include details of the progress that has been made towards achieving that purpose or completing that project. (8) The report shall— (a) be made in accordance with a resolution of the directors; and (b) specify the date on which the report is made. (9) Where a borrower fails to deliver the report to the trustee, the trustee shall inform the Commission of that fact. (10) A borrower who contravenes this section shall be guilty of an offence.