Section 125: Reissue of redeemed debentures

125. Reissue of redeemed debentures (1) Where a company has, whether before or after the commencement of this Act, redeemed a debenture, it shall subject to subsection (2)— (a) unless any provision to the contrary, whether express or implied, is contained in the constitution or in any contract entered into by the company; or (b) unless the company has, by passing a resolution to that effect or by some other act, manifested its intention that the debentures shall be cancelled, have and be deemed always to have had the power to reissue the debentures by reissuing the same debentures or by issuing other debentures in their place. (2) The reissue of a debenture or the issue of one debenture in place of another under subsection (1), shall not be regarded as the issue of a new debenture for the purpose of any provision in the constitution or in any contract entered into by the company limiting the amount or number of debentures that may be issued by the company. (3) After the reissue the person entitled to the debentures shall have and shall be deemed always to have had the same priorities as if the debentures had never been redeemed. (4) Where, whether before or after the commencement of this Act, a company has given a debenture to secure advances on current account or otherwise, the debenture shall not be deemed to have been redeemed by reason that the account of the company with the debenture holder has ceased to be in debit while the debenture remains unsatisfied.