Loans Securities Act 1919

Where under an Act the Treasurer has the authority to borrow money in accordance with the Commonwealth Inscribed Stock Act 1911 or any Act authorising the issue of Treasury bills, the Governor‑General may, in spite of anything in those Acts, in writing, authorise the Treasurer:

to borrow the money in amounts not exceeding, in the aggregate, such amount as the Governor‑General determines;

to borrow the money:

either by way of a single borrowing or by way of a program of borrowings, as the Governor‑General determines;

in such manner as the Governor‑General determines; and

at prices, and on terms and conditions, that are not less favourable to the Commonwealth than the prices, and the terms and conditions, determined by the Governor‑General; and

to issue, in such form as the Governor‑General determines, such stock and securities as the Governor‑General determines.

An authority under subsection (1) may, instead of determining any matter referred to in paragraph (1)(b) or (c), authorise the Treasurer to determine that matter and, in that case, the Treasurer is empowered to determine, in writing, that matter.

establish Registries at any places outside the Commonwealth for the inscription of Stock and for the issue and registration of securities or any other documents required in connexion with the issue of any loan or for defining or registering the indebtedness of the Commonwealth to lenders;

appoint such Registrars or Deputy Registrars as he or she thinks necessary.

enter into agreements with banks or other financial institutions;

enter into fiscal agency agreements;

in relation to the issue of any stock or security:

issue information memoranda in relation to the stock or security; and

issue any document necessary for the listing of the stock or security on any stock exchange or security market; and

take any action (including the signing of any document) required or permitted to be taken by or on behalf of the Commonwealth:

under any agreement referred to in paragraph (a) or (b) or following the issue of a document under paragraph (c); or

for any purpose relating to the borrowing.

The Treasurer may, on behalf of the Commonwealth, enter into an agreement with any person or organisation or the government of any country, either within or outside Australia, under which:

the Commonwealth undertakes to make payments in any currency to, or to the account of, the other party to the agreement; and

the other party undertakes to make payments to, or to the account of, the Commonwealth, in the same or any other currency.

Any money payable by the Commonwealth under an agreement under subsection (1) and any expenditure incurred in connection with the negotiation, management or service of, or a repayment under, any such agreement, shall be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.

The Treasurer may, from time to time, enter into securities lending arrangements, on behalf of the Commonwealth, by lending stock and securities issued under the Commonwealth Inscribed Stock Act 1911, and denominated in Australian currency.

The total face value of stock and securities on loan by the Treasurer at any time under securities lending arrangements entered into under subsection (1) must not exceed $5 billion.

The Treasurer must not lend stock or securities under securities lending arrangements entered into under subsection (1) unless the Treasurer receives collateral of one or more of the following kinds:

cash;

debt instruments denominated in Australian currency with an investment grade credit rating;

collateral of the kind mentioned in paragraph (b), where the instrument is in electronic form;

a deposit with a bank, including a deposit evidenced by a certificate of deposit;

any other collateral prescribed by the regulations.

The Treasurer must take sufficient collateral of one or more of the kinds mentioned in subsection (3) to cover the market value of the security on loan at all times.

Lending stock or a security is taken to include an arrangement under which it is sold and repurchased.

The Consolidated Revenue Fund is appropriated as necessary for the purposes of this section.

Nothing in this section affects the power to make investments under section 58 of the Public Governance, Performance and Accountability Act 2013 (which deals with investment by the Commonwealth.

The Treasurer may, on behalf of the Commonwealth, enter into a written agreement or undertaking under which the Commonwealth agrees or undertakes to submit to the jurisdiction of a foreign court for the purposes of any action or proceeding before that court relating to:

an agreement referred to in section 5A or subsection 5B(1); or

the issue by the Treasurer of any stock or security in relation to the borrowing of money outside Australia.

Subject to any other Act, the Treasurer may, on behalf of the Commonwealth, in connection with:

any action or proceeding referred to in subsection (1); or

the execution of any order made or judgment given in such an action or proceeding;

the Commonwealth; or

any property or asset of, or in the custody of, or administered by, the Commonwealth (other than any property or asset used or intended to be used for any diplomatic, consular or military purpose).

The Treasurer may, by signed instrument, delegate to:

a specified officer of the Department; or

any person who from time to time holds, or performs the duties of, a specified office in the Department;

the powers (if any) of the Treasurer under subsection 3(2) to determine matters for the purposes of paragraph 3(1)(b) or (c);

the powers of the Treasurer under sections 5A, 5B and 5C.

The Treasurer may, by signed instrument, delegate to:

a specified member of the diplomatic mission of Australia in a foreign country; or

any person who from time to time holds, or performs the duties of, a specified post in the diplomatic mission of Australia in a specified foreign country;

the powers (if any) of the Treasurer under subsection 3(2) to determine matters for the purposes of paragraph 3(1)(b) or (c);

the powers of the Treasurer under section 5A;

the powers of the Treasurer under section 5C in so far as they are exercisable for the purposes of an action or proceeding relating to:

an agreement referred to in section 5A; or

the issue by the Treasurer of any stock or security in relation to the borrowing of money outside Australia.

The Treasurer may, by signed instrument, delegate all or any of the Treasurer’s powers and functions under section 5BA to:

an SES employee in the Department; or

an APS employee who holds or performs the duties of an Executive Level 2, or equivalent, position in the Department; or

a person appointed as a staff member of the Reserve Bank Service under section 67 of the Reserve Bank Act 1959 who occupies an office or position at an equivalent level to that of an SES employee, or an Executive Level 2, in the Department.

The Treasurer must, by signed instrument, give a direction as to the kinds of collateral that must be received in relation to securities lending arrangements entered into under subsection 5BA(1).

In exercising the Treasurer’s powers and functions under section 5BA, a delegate must comply with:

a direction in force under subsection (2); and

any other direction given, by signed instrument, to the delegate by the Treasurer.

The Treasurer must table a direction given under subsection (2) or paragraph (3)(b) in each House of the Parliament no later than 15 sitting days of that House after it is given.

Whenever, by the final judgment decree rule or order of any court of competent jurisdiction in the United Kingdom, any sum of money is adjudged to be payable by the Commonwealth in respect of any stock or securities, the Finance Minister shall forthwith pay the sum out of the Consolidated Revenue Fund, which is hereby appropriated accordingly.

In this section final judgment decree rule or order means, in case of appeal, the final judgment decree rule or order of the ultimate court hearing the appeal.

Without in any way limiting the foregoing provisions of this section, it is hereby declared that, in the case of any Stock or securities being colonial Stock to which the Imperial Acts known as the Colonial Stock Acts 1877 to 1900 apply, the Finance Minister shall forthwith pay out of the Consolidated Revenue Fund, which is hereby appropriated accordingly, whatever sums of money are from time to time required to enable the Registrar to comply forthwith with any judgment decree rule or order with which under the Imperial Acts the Registrar is required to comply.