1Purpose
The purpose of this Act is to make provision for borrowing and investment powers for certain statutory bodies.
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The purpose of this Act is to make provision for borrowing and investment powers for certain statutory bodies.
This Act comes into operation on a day or days to be proclaimed.
In this Act—
arrangement means any agreement, arrangement, understanding, promise or undertaking whether express or implied or any transaction;
Australia means the Commonwealth of Australia and includes the territories of the Commonwealth;
S. 3(1) def. of authorised deposit-taking institution inserted by No. 11/2001 s. 3(Sch. item 7.1(a)).
authorised deposit-taking institution has the same meaning as in the Banking Act 1959 of the Commonwealth;
S. 3(1) def. of authority amended by Nos 99/1993 s. 5, 100/1995 s. 4(1), substituted by No. 23/2022 s. 3.
authority means a person or body that is prescribed;
S. 3(1) def. of bank amended by No. 99/1993 s. 9, repealed by No. 11/2001 s. 3(Sch. item 7.1(b)).
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financial accommodation means a financial benefit or assistance to obtain a financial benefit arising from or as a result of—
a loan;
issuing, endorsing or otherwise dealing in promissory notes;
drawing, accepting, endorsing or otherwise dealing in bills of exchange;
issuing, purchasing or otherwise dealing in securities;
granting or taking a lease of any real or personal property for financing but not for operating purposes;
any other arrangement that the Governor in Council on the recommendation of the Treasurer approves;
S. 3(1) def. of financial arrangement substituted by No. 100/1995 s. 4(3).
financial arrangement means an arrangement establishing rights and obligations to receive or deliver property the value of which, or to receive or make a payment in an amount which, or the value of which—
depends on, or is derived from, the value, or price, at a particular future time or during a particular future period, of particular property, rights or liabilities; or
depends on, or is derived by reference to, a particular rate, index or other factor at a particular future time or during a particular future period;
S. 3(1) def. of invest amended by No. 56/2016 s. 14.
invest includes acquisition, sale or divestment of an investment and entering into a transaction or arrangement for the protection or enhancement of investments;
lease means—
any lease, licence, charter or hiring arrangement of any real or personal property; or
any arrangement under which a right to use, operate, manage or provide services in respect of any real or personal property is granted by the owner to another person;
prescribed means prescribed by the regulations;
S. 3(1) def. of property inserted by No. 100/1995 s. 4(2).
property means any legal or equitable estate or interest (whether present or future and whether vested or contingent) in real or personal property of any description;
security includes inscribed stock and debenture, bond, debenture stock, notes or any other document creating, evidencing or acknowledging indebtedness in respect of financial accommodation whether constituting a charge on property of an authority or not.
An approval given under this Act may be given unconditionally or subject to such conditions as the Governor in Council or the Treasurer, as the case may be, thinks fit.
S. 3A inserted by No. 99/1993 s. 6, substituted by No. 23/2022 s. 4.
A section of this Act applies to an authority if the section is prescribed as applying to that authority.
Part 2—Borrowing powers[1]
Division 1—General
An authority may, for the purpose of performing its functions or exercising its powers—
exercise any power conferred on it by this Part; and
with the approval of the Governor in Council on the recommendation of the Treasurer, do anything necessary for, or incidental to, the exercise of any power conferred on it by this Part.
Division 2—Financial accommodation
S. 5 amended by Nos 78/1988 s. 4(a), 64/1991 s. 10(a), 99/1993 s. 7(a), 100/1995 s. 5, 11/2001 s. 3(Sch. item 7.2).
An authority to which this section applies may, with the approval of the Treasurer, obtain a financial benefit or assistance to obtain a financial benefit by way of overdraft of account at any authorised deposit-taking institution or other financial institution in Australia.
S. 6 amended by Nos 64/1991 s. 10(b), 99/1993 s. 7(b), repealed by No. 100/1995 s. 6.
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S. 7 amended by No. 99/1993 s. 7(c), repealed by No. 100/1995 s. 6.
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S. 8 amended by Nos 78/1988 s. 4(b), 64/1991 s. 10(a), 99/1993 s. 7(d), substituted by No. 100/1995 s. 6.
An authority to which this section applies may, with the approval of the Treasurer, obtain financial accommodation within Australia.
An authority to which this section applies may not obtain financial accommodation under this section by granting or taking a lease of real or personal property.
S. 9 amended by No. 99/1993 s. 7(e), substituted by No. 100/1995 s. 6.
An authority to which this section applies may, with the approval of the Treasurer, obtain financial accommodation within or outside Australia.
An authority to which this section applies may not obtain financial accommodation under this section by granting or taking a lease of real or personal property.
S. 10 amended by Nos 78/1988 s. 4(c), 99/1993 s. 7(f).
An authority to which this section applies may, with the approval of the Treasurer, obtain financial accommodation within or outside Australia under an arrangement under which or as part of which the authority enters into a lease of the whole or any part of real or personal property.
S. 11 amended by Nos 64/1991 s. 10(b), 99/1993 s. 7(g), substituted by No. 100/1995 s. 7.
An authority to which this section applies—
may, with the approval of the Treasurer, enter into and perform financial arrangements to hedge, protect or manage the value of its assets or liabilities, or prospective assets or liabilities, against movements in—
currency rates, interest rates, prices of shares, property or commodities; or
any other rates, costs or other factors specified by the Treasurer, including rates, costs or other factors that affect, or could affect, the value of its assets or liabilities or prospective assets or liabilities; and
may, with the approval of the Treasurer enter into financial arrangements to acquire or dispose of assets or liabilities.
S. 11AA inserted by No. 31/1991 s. 4, amended by No. 99/1993 s. 7(h).
If—
an authority to which this section applies entered into, or purported to enter into, a financial transaction that was not, or may not have been, a financial arrangement of a kind that the authority was authorised to enter into under section 4 and 11 or section 11; and
another party to the financial transaction entered into the financial transaction in good faith and with no reason to suspect, at the time of entering into the financial transaction, that the transaction was not a financial arrangement of a kind that the authority was authorised to enter into under section 4 and 11 or section 11—
the financial transaction may be enforced as if it were a financial arrangement which the authority had been authorised to enter into.
Subsection (1) applies in relation to transactions entered into whether before or after the commencement of section 4 of the Borrowing and Investment Powers (Further Amendment) Act 1991.
S. 11AB inserted by No. 85/1994 s. 3.
An authority to which this section applies may assume obligations and rights under or in connection with financial accommodation obtained by another person and any security for that financial accommodation if—
the arrangements under which the other person obtained the financial accommodation or gave the security include provision for such an assumption by the authority; or
all the parties to those arrangements and the authority agree in writing to the assumption by the authority—
and the Treasurer gives approval in writing.
Pt 2 Div. 2A (Heading and s. 11A) inserted by No. 78/1988 s. 5, amended by Nos 61/1992 s. 3, 99/1993 ss 7(i)(j), 10, 31/1995 s. 52(Sch. 1 items 1.1, 1.2), repealed by No. 40/2013 s. 3(1).
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Division 3—Guarantees
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