Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) This section sets out what happens if, after the end of the * arrangement, the * notional buyer and * notional seller extend or renew the * arrangement.
(2) This Division applies as if the original * arrangement has ended and the extended arrangement or renewed arrangement is a separate arrangement (the new arrangement ).
(3) There is not, however, taken to be any disposal or acquisition as a result of the original arrangement ending or of the new arrangement starting and the * notional buyer does not cease to own the property.
(4) Also, the notional loan principal for the new loan is:
(a) if the * arrangement as extended or renewed states an amount as the cost or value of the property for the purposes of the extension or renewal and the * notional seller and the * notional buyer were dealing with each other at * arm's length in connection with the extension or renewal--the amount so stated; or
(b) otherwise--the amount that could reasonably have been expected to have been paid by the notional buyer for the purchase of the property if:
(i) the notional seller had actually sold the property to the notional buyer when the arrangement was extended or renewed; and
(ii) the notional seller and notional buyer were dealing with each other at arm's length in connection with the sale.
(5) Subdivision 240 - G applies to the notional loan for the original arrangement. For that purpose, the notional loan principal for the new arrangement is taken to be a * termination amount paid to the * notional seller under the original arrangement.