Credit and Lending Decisions Assignment Victoria University

Running head: CREDIT AND LENDING DECISION
Credit and Lending Decision
Name of the University
Name of the Student
Authors Note
Course ID

CREDIT AND LENDING DECISION1
Table of Contents
Answer to question 1:.................................................................................................................2
Answer to question 2:.................................................................................................................3
Answer to question 3:.................................................................................................................4
Answer to question 4:.................................................................................................................5
Reference List:...........................................................................................................................6

CREDIT AND LENDING DECISION2
Answer to question 1:
Section 708a provides that this section is applicable to an offer relating to sale of the
securities if the subsection (5), (11) or (12), would be required by the subsection 707 (3) for
the sale offer relating to the disclosure to the investors under this part (Corkery et al. 2017).
Section 708a applies that the securities were not issued by the corporate body with the
objective that is referred in subparagraph 707 (3) (b). An important consideration under
section 708 (a) defines that the subsection (2) was not in force concerning the body
throughout the time when the relevant securities were issued.
Conversely an exempted offer is not required for disclosure under the section 708 CA.
The transactions that are excluded from the requirements relating to the disclosure documents
made under the section 708 falls inside two categories. The primary category is where the
investors are considered to be in need of protection (Buchan et al. 2017). The second
category represents a circumstances where concession is provided to the enterprises that are
wishing to raise small sum of funds. The exemption identifies the prohibitive cost of
requiring disclosure for fund raising of small scale in nature.
The exemptions are as follows;
a. Exemptions of small scale
b. Exemption to investors of sophisticated nature
c. Exemption to investors of professional type
d. Exemption to the existing holder
e. The exemptions of debenture
f. The exemption relating to no considerations
g. The exemptions of public bodies and public authorities