| C2004C01807 | AIRLINES EQUIPMENT (LOAN GUARANTEE) ACT 1981
- Updated as at 25 August 1993 (#DATE 25:08:1993)
*1* The Airlines Equipment (Loan Guarantee) Act 1981 as shown in this reprint comprises Act No. 38, 1981 amended as indicated in the Tables below. Table of Acts Act Date Date of Application Number and of assent commencement saving or year transitional provisions Airlines Equipment (Loan Guarantee) Act 1981 38, 1981 21 Apr 1981 21 Apr 1981 Companies and Securities Legislation (Miscellaneous Amendments) Act 1981 153, 1981 26 Oct 1981 Part XI (s. 100) : 1 July 1982 (see s. 2 (4) and Gazette 1982, No. S124) - (a) The Airlines Equipment (Loan Guarantee) Act 1981 was amended by Part XI (s. 100) only of the Companies and Securities (Miscellaneous Amendments) Act 1981, subsection 2 (4) of which provides as follows: "(4) Parts VII, VIII, IX, X and XI shall come into operation on the day on which the Companies Act 1981 comes into operation." Table of Amendments ad=added or inserted am=amended rep=repealed rs=repealed and substituted Provision affected How affected S. 3 am. No. 153, 1981 AIRLINES EQUIPMENT (LOAN GUARANTEE) ACT 1981 - TABLE OF PROVISIONS
TABLE
TABLE OF PROVISIONS
Section
1. Short title
2. Commencement
3. Interpretation
4. Guarantee of certain loans
5. Conditions of guarantees
6. Delegation
AIRLINES EQUIPMENT (LOAN GUARANTEE) ACT 1981 - LONG TITLE
SECT
An Act relating to guarantees of certain borrowings
by a domestic airline
AIRLINES EQUIPMENT (LOAN GUARANTEE) ACT 1981 - SECT 1
Short title
SECT
1. This Act may be cited as the Airlines Equipment (Loan Guarantee) Act
1981.*1*
SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .
AIRLINES EQUIPMENT (LOAN GUARANTEE) ACT 1981 - 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 .
AIRLINES EQUIPMENT (LOAN GUARANTEE) ACT 1981 - SECT 3
Interpretation
SECT
3. (1) In this Act, unless the contrary intention appears:
"Ansett" means Ansett Transport Industries Limited;
"relevant subsidiary" means a body corporate that:
(a) is a wholly-owned subsidiary of Ansett; and
(b) owns or operates, or is to own or operate, aircraft.
(2) For the purposes of this Act:
(a) the issue by a person of instruments acknowledging a debt in
consideration of:
(i) the payment or deposit of moneys; or
(ii) the provision of credit;
shall, to the extent of the amount of those moneys or of that credit, be
deemed to be a borrowing by that person; and
(b) the obtaining of credit by a person shall, to the extent of the amount
of that credit, be deemed to be a borrowing by that person.
(3) For the purposes of the definition of "relevant subsidiary" in
subsection (1), a body corporate is a wholly-owned subsidiary of Ansett if
that body corporate is a subsidiary of Ansett and none of the members of that
body corporate is a person other than:
(a) Ansett;
(b) a nominee of Ansett;
(c) a subsidiary of Ansett, being a subsidiary none of the members of which
is a person other than Ansett or a nominee of Ansett; or
(d) a nominee of a subsidiary referred to in paragraph (c).
(4) For the purposes of subsection (3), the question whether a body
corporate is a subsidiary of Ansett shall be determined in the same manner as
the question whether a corporation is a subsidiary of another corporation is
determined under the Companies Act 1981.
AIRLINES EQUIPMENT (LOAN GUARANTEE) ACT 1981 - SECT 4
Guarantee of certain loans
SECT
4. (1) Where:
(a) a relevant subsidiary has entered into an agreement to borrow moneys;
and
(b) the Treasurer is satisfied that the moneys are for use in connection
with the purchase by the relevant subsidiary of any of the following
aircraft:
(i) 12 Boeing 737 aircraft;
(ii) 4 Boeing 727 aircraft;
(iii) 5 Boeing 767 aircraft;
or in connection with the purchase by the relevant subsidiary of related spare
parts and equipment;
the Treasurer may, on behalf of the Commonwealth, at the request of Ansett,
and subject to the conditions required by this Act, guarantee:
(c) the repayment of moneys borrowed under the agreement; and
(d) the payment of interest (including any interest on that interest) on
moneys so borrowed.
(2) A guarantee or guarantees shall not be given under subsection (1) in
respect of moneys borrowed in the currency of the United States of America, or
in any other currency, exceeding in the aggregate $490,000,000 in the currency
of the United States of America.
(3) For the purposes of subsection (2), the amount of a borrowing in a
currency other than the currency of the United States of America shall be
taken to be the amount in the currency of the United States of America that
was equivalent to the first-mentioned amount at the date of the borrowing, as
ascertained by the Reserve Bank of Australia.
(4) The power of the Treasurer to give a guarantee under this section
includes:
(a) a power to agree, on behalf of the Commonwealth, that proceedings under
the guarantee may be taken in a court of a country other than Australia; and
(b) a power to waive, on behalf of the Commonwealth, the immunity of the
Commonwealth from suit in a court of a country other than Australia in
relation to any proceedings that may be taken under the guarantee in such a
court.
AIRLINES EQUIPMENT (LOAN GUARANTEE) ACT 1981 - SECT 5
Conditions of guarantees
SECT
5. For the purpose of the protection of the financial interests of the
Commonwealth, the Treasurer shall not give a guarantee under section 4 in
respect of a borrowing by a relevant subsidiary unless:
(a) the Treasurer is satisfied that the terms and conditions of the
borrowing are reasonable;
(b) where the borrowing consists of, or includes, the issue of instruments -
the issue of those instruments, and the form of those instruments, have been
approved by the Treasurer;
(c) appropriate security to the satisfaction of the Treasurer is, or is to
be, given to the Commonwealth over the aircraft, spare parts and equipment to
which the borrowing relates;
(d) undertakings to the satisfaction of the Treasurer are given that the
goods over which security is, or is to be, taken in accordance with paragraph
(c):
(i) will be insured, and kept insured, to their full insurable
value against all risks against which it is customary to insure;
(ii) will not be sold or made the subject of a mortgage or charge
having priority over the security given 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 giving of such security as
the Treasurer requires;
(e) undertakings to the satisfaction of the Treasurer are given that, so
long as the whole or any part of the amount borrowed, or any interest on that
amount, remains unpaid:
(i) officers of the Australian Public Service will have full
access at all reasonable times to the financial accounts of Ansett and of the
relevant subsidiary when authorized in writing by the Minister for that
purpose; and
(ii) Ansett and the relevant subsidiary will do everything within
their power to ensure that the officers so authorized have similar access to
the financial accounts of any body, whether corporate or unincorporate, in
which Ansett or the relevant subsidiary has, at any time, whether directly or
indirectly, a controlling interest;
(f) undertakings to the satisfaction of the Treasurer are given that any
legal costs incurred by the Commonwealth in connection with the giving of the
guarantee will be met by the relevant subsidiary; and
(g) such other conditions as the Treasurer thinks necessary are fulfilled.
AIRLINES EQUIPMENT (LOAN GUARANTEE) ACT 1981 - SECT 6
Delegation
SECT
6. (1) The Treasurer may, either generally or as otherwise provided by the
instrument of delegation, by writing signed by him, delegate to an officer of
the Department of the Treasury any of his powers or functions under this Act,
other than this power of delegation.
(2) A power or function so delegated, when exercised or performed by the
delegate, shall, for the purposes of this Act, be deemed to have been
exercised or performed by the Treasurer.
(3) A delegate is, in the exercise or performance of a power or function so
delegated, subject to the directions of the Treasurer.
(4) A delegation under subsection (1) does not prevent the exercise of a
power or the performance of a function by the Treasurer.
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