Airline Equipment (Loan Guarantee) Act 1972 (Cth)

AIRLINE EQUIPMENT (LOAN GUARANTEE) ACT 1972
- Reprinted as at 31 July 1983 (HISTACT CHAP 474 #DATE 31:07:1983)

*1* The Airline Equipment (Loan Guarantee) Act 1972 as shown in this reprint comprises Act No. 42, 1972 amended as indicated in the Tables below.

(The citation "Airline Equipment (Loan Guarantee) Act 1972" is provided for by the Amendments Incorporation Act 1905 and the Acts Citation Act 1976 .)
Table of Acts
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Application,
saving
Number Date Date of or
transitional
Act and year of Assent commencement provisions
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Airline Equipment
(Loan Guarantee)
Act 1972 42, 1972 7 June
1972 7 June 1972
Statute Law
Revision Act 1973 216, 1973 19 Dec
1973 31 Dec 1973 Ss. 9 (1)
and 10
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Table of Amendments
ad. = added or inserted am. = amended rep. = repealed
rs. = repealed and substituted
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Provision affected How affected
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S. 4 . . . . . . . . am. No. 216, 1973
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AIRLINE EQUIPMENT (LOAN GUARANTEE) ACT 1972 - TABLE OF PROVISIONS 
TABLE

                             TABLE  OF  PROVISIONS

Section
  1.        Short title

  2.       Commencement

  3.       Guarantee of certain loans

  4.       Financial conditions of guarantees

AIRLINE EQUIPMENT (LOAN GUARANTEE) ACT 1972 - LONG TITLE 
SECT

An Act relating to the provision of certain Equipment for a Domestic Airline

AIRLINE EQUIPMENT (LOAN GUARANTEE) ACT 1972 - SECT 1 
Short title 
SECT

  1. This Act may be cited as the Airline Equipment (Loan Guarantee) Act
1972.*1*
SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .

AIRLINE EQUIPMENT (LOAN GUARANTEE) ACT 1972 - SECT 2 
Commencement 
SECT

  2. This Act shall come into operation on the day on which it receives the
Royal Assent.*1*
SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .

AIRLINE EQUIPMENT (LOAN GUARANTEE) ACT 1972 - SECT 3 
Guarantee of certain loans 
SECT

  3. (1) The Treasurer may, on behalf of the Commonwealth, at the request of
Ansett Transport Industries Limited and subject to the conditions required by
this Act, for the purpose of enabling the purchase by Ansett Transport
Industries (Operations) Proprietary Limited of four Boeing 727-200 aircraft
and related spare parts and equipment, guarantee the repayment of, and the
payment of interest on, one or more loans made or to be made to Ansett
Transport Industries (Operations) Proprietary Limited.
  (2) A guarantee or guarantees shall not be given under the last preceding
sub-section in respect of loans exceeding in the whole the sum of Thirty-one
million dollars in the currency of the United States of America and for that
purpose the amount of a loan made in any other currency shall, for the
purposes of the last preceding sub-section be taken to be the amount in the
currency of the United States of America that is equivalent to the
first-mentioned amount as ascertained-

  (a)  in accordance with the effective parity relationship between those
currencies as fixed by determination of the International Monetary Fund in
force at the time at which the loan was made; or

         (b)  if there is no such effective parity relationship, in accordance
with the corresponding official rate of exchange between that other currency
and the currency of the United States of America applicable at the time at
which the loan was made.
  (3) The guarantee in respect of a loan or loans under this section does not
affect the rights of Ansett Transport Industries Limited or Ansett Transport
Industries (Operations) Proprietary Limited under clause 4 of the agreement
set out in the Second Schedule to the Airlines Agreements Act 1952-1961.*2*

AIRLINE EQUIPMENT (LOAN GUARANTEE) ACT 1972 - SECT 4 
Financial conditions of guarantees 
SECT

  4. For the purpose of the protection of the financial interests of the
Commonwealth, the Treasurer shall not give a guarantee under the last
preceding section in respect of a loan unless-

  (a)  the moneys are borrowed upon reasonable terms and conditions;

         (b)  proper security is, or is to be, given to the Commonwealth over
the aircraft, spare parts and equipment to which the loan relates;

         (c)  undertakings to the satisfaction of the Treasurer are given that
the aircraft, spare parts and equipment over which security is to be taken in
accordance with the last preceding paragraph-

             (i)  will be insured, and kept insured, against all risks that it
is customary to insure, and to their full insurable value;

        (ii)  will not be sold or made the subject of a mortgage or charge
having priority over the security to the Commonwealth in respect of the
guarantee; and

        (iii)  will not be taken out of Australia for a destination that is
not in Australia or a Territory except after the furnishing of such security
as the Treasurer requires;

     (d)  undertakings to the satisfaction of the Treasurer are given that, so
long as the loan or any interest on the loan remains unpaid-

             (i)  officers employed in the Commonwealth Service will have full
access at all reasonable times to the financial accounts of Ansett Transport
Industries Limited and Ansett Transport Industries (Operations) Proprietary
Limited when authorized in writing by the Minister for that purpose; and

        (ii)  each of those companies will do everything within its power to
ensure that the officers so authorized have similar access to the financial
accounts of any company or firm in which that company at any time has, whether
directly or indirectly, a controlling interest; and

     (e)  such other conditions as the Treasurer thinks necessary are
fulfilled.