Limited validation of certain investments
20A Limited validation of certain investments
If—
an authority to which this section applies entered into, or purported to enter into, a transaction or arrangement in the exercise of a power of investment that was not, or may not have been, a power of a kind that the authority was authorised to exercise under section 19 and 20 or section 20; and
another party to the transaction or arrangement entered into the transaction or arrangement in good faith and with no reason to suspect, at the time of entering into the transaction or arrangement, that the transaction or arrangement was not entered into by the authority in the exercise of a power of investment of a kind that the authority was authorised to exercise under section 19 and 20 or section 20—
the transaction or arrangement may be enforced as if it had been entered into by the authority in the exercise of a power of investment under section 19 and 20 or section 20.
Subsection (1) applies in relation to transactions and arrangements entered into whether before or after the commencement of section 5 of the Borrowing and Investment Powers (Further Amendment) Act 1991.
S. 21 amended by Nos 78/1988 s. 6(d), 64/1991 s. 10(a), 99/1993 s. 7(q).
This Act’s bill:Second reading speech
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