Reference no: EM133115799

SuperUni, a superannuation for universities employees, owns some Commonwealth Bank capital notes. SuperUni accepts to lend its capital notes to Killlinvest, an investment bank, for a 15 day loan. Killinvest puts a sale order for the capital notes the day after it found a lender. The buyer of the capital notes is Aussie, a managed fund.15 days after the settlement of the lending agreement, the capital notes need to be returned to the original owner and Killinvest needs to put a buy order for these capital notes during the last day of the loan. The original owner puts a sale order for the capital notes the day after the borrower has put the order to return them.

-Consider the reporting(s) required when Killinvest puts its sale order. Clearly indicate which information needs to be reported, which entity is in charge of reporting and to which entity the information is reported.

-A week after the lending agreement was established, a distribution is due on the Commonwealth capital notes. Describe all payments taking place on this occasion, clearly indicating which entities in our story pay and which entities in our story receive.