Financial Management Act 1996

The Treasurer may, on the terms and conditions the Treasurer considers appropriate—

borrow money for a territory authority; or

lend public money to a territory authority.

A borrowing may be secured by the territory authority’s assets approved by the Treasurer for this section.

A territory authority may arrange an overdraft or credit facility only with the written approval of the Treasurer.

A loan under subsection (1) (b) may be made only from—

money appropriated for the purpose of making the loan; or

money appropriated for purposes that include the purpose of making the loan.

However, subsection (4) does not apply to an overdraft or credit facility for a territory authority from the territory banking account that is approved by the Treasurer for the authority.

The Treasurer may approve an overdraft or credit facility for a territory authority under subsection (5) only if satisfied that it is for a purpose consistent with a function of the authority.

An approval under subsection (5) must state, for the overdraft or credit facility—

each purpose for which it may be used; and

the maximum amount that may be outstanding at any time; and

conditions about—

the repayment of principal; and

the interest rate; and

the repayment of interest.

An approval under subsection (5) may also state any other condition that the Treasurer requires.

An approval under subsection (5) is a disallowable instrument.

An overdraft or credit facility approved under subsection (5) must be reviewed annually by the Treasurer.