International Monetary Agreements Act 1947

For the purposes of this Act, a relevant financial obligation in relation to the Bank is an obligation of Australia (contingent or otherwise) for which the following requirements are satisfied:

the obligation requires (or could require) Australia to make one or more payments;

the obligation is undertaken or imposed under:

the Bank Agreement; or

an agreement or arrangement between Australia and the Bank (other than an agreement mentioned in section 8CA); or

a resolution adopted by the Board of Governors of the Bank;

for an obligation undertaken or imposed under an agreement, arrangement or resolution mentioned in subparagraph (b)(ii) or (iii)—the agreement, arrangement or resolution relates to Australia:

purchasing or subscribing to shares of the capital stock of the Bank; or

purchasing a bond, debenture, convertible note or similar financial instrument issued by the Bank; or

granting a guarantee in support of the purposes of the Bank; or

providing any other form of financial accommodation in support of the purposes of the Bank;

the obligation is not excluded by a determination under subsection (5).

However, for the purposes of this Act:

an obligation that is undertaken or imposed after the commencement of this section is a relevant financial obligation in relation to the Bank only if notice of the obligation has been given under subsection (5); and

an increase in an amount of a relevant financial obligation in relation to the Bank because of the variation of, or making of a new, agreement, arrangement or resolution after the commencement of this section is to be taken into account only if notice of the increase has been given under subsection (5).

To avoid doubt, for the purposes of subsection (2), the timing of when a contingency happens or may happen does not affect the timing of when a contingent obligation itself is undertaken or imposed.

For example, an obligation to make one or more payments in response to a call on callable shares is undertaken or imposed when the callable shares are purchased or subscribed to (rather than when the call is made).

The Treasurer may, by legislative instrument, determine that an obligation is excluded for the purposes of paragraph (1)(d).

The Treasurer may, by legislative instrument, give notice of:

the undertaking or imposition of an obligation for the purposes of paragraph (2)(a); or

an increase in an amount for the purposes of paragraph (2)(b).

A legislative instrument under subsection (5) commences at the later of the following days or times:

the earliest day or time applicable under subsection 12(1) of the Legislation Act 2003;

the start of the day immediately after the last day on which a resolution referred to in subsection 42(1) of the Legislation Act 2003 disallowing the instrument could be passed.