Multilateral Investment Guarantee Agency Act 1997

This Act may be cited as the Multilateral Investment Guarantee Agency Act 1997.

This Act commences on the day on which it receives the Royal Assent.

In this Act:

Agency means the Multilateral Investment Guarantee Agency.

Convention means the Convention Establishing the Multilateral Investment Guarantee Agency, done at Seoul on 11 October 1985, as in force for Australia from time to time.

Note: The Convention is in Australian Treaty Series 1998 No. 24 ([1998 ATS 24]) and could in 2026 be viewed:

on the Agency’s website (https://www.miga.org); or

in the Australian Treaties Library on the AustLII website (https://www.austlii.edu.au).

relevant financial obligation has the meaning given by section 3A.

For the purposes of this Act, a relevant financial obligation 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 Convention; or

an agreement or arrangement between Australia and the Agency (other than an agreement mentioned in section 8CA of the International Monetary Agreements Act 1947); or

a resolution adopted by the Council of Governors of the Agency;

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 Agency; or

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

granting a guarantee in support of the objective and purposes of the Agency; or

providing any other form of financial accommodation in support of the objective and purposes of the Agency;

the obligation is not excluded by a determination under subsection (4).

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 only if notice of the obligation has been given under subsection (5); and

an increase in an amount of a relevant financial obligation 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.

Note: 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).

Treasurer may exclude obligations

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

Notification of new financial obligations

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.

The Consolidated Revenue Fund is appropriated for the purposes of:

making any payments necessary to meet relevant financial obligations; and

making any payments necessary to redeem securities issued under section 5.

To the extent that the Agency or another body is prepared to accept promissory notes or other securities issued by Australia in place of any payment that Australia is required to make to the Agency or other body in accordance with a relevant financial obligation, the Treasurer may make and issue those securities.

A security issued under subsection (1) is to be:

non‑negotiable; and

non‑interest bearing; and

payable to the Agency or other body.

The Treasurer may, in writing, delegate all or any of the Treasurer’s powers under section 5 to:

the Secretary of the Department; or

an SES employee, or an acting SES employee, in the Department.

Note: Sections 34AA to 34A of the Acts Interpretation Act 1901 contain provisions relating to delegations.

A person exercising powers under a delegation under subsection (1) must comply with any written directions of the Treasurer under subsection (3).

The Treasurer may, in writing, give directions for the purposes of subsection (2).