Banking Legislation Amendment Act 1986 (Cth)

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Banking Legislation Amendment Act 1986

N o. 166 of 1986

TABLE OF PROVISIONS PART I—PRELIMINARY

Section

1. Short title

2. Commencement

PART II—AMENDMENTS OF THE RESERVE BANK ACT 1959

3. Principal Act

4. Repeal of section and substitution of new section—

15. Remuneration of members

5. Governor and Deputy Governor

6. Insertion of new section—

FORMAL AND MINOR AMENDMENTS OF THE RESERVE BANK ACT 1959

24A.

Remuneration of Governor and Deputy Governor

7. Functions of Department

8. Insertion of new section—

65A.

Winding up of Rural Credits Department

9. Repeal of Part VI

10. Determination of net profits

11. Repeal of Second Schedule

12. Formal and minor amendments

PART III—AMENDMENTS OF THE BANKING ACT 1959

13. Principal Act

14. Balance-sheets and statements to be furnished by trading banks

15. Additional statements

16. Preparation and delivery of Forms

17. Certain statements to be published in the Gazette

SCHEDULE

Banking Legislation Amendment Act 1986

N o. 166 of 1986

An Act to amend the Reserve Bank Act 1959 and the

Banking Act 1959

[Assented to 18 December 1986}

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

PART I—PRELIMINARY

Short title

1. This Act may be cited as the Banking Legislation Amendment

Act

1986.

Commencement

2. ( 1 ) Subject to sub-section ( 2 ), this Act shall come into operation on the twenty-eighth day after the day on which it receives the Royal Assent.

(2) Sections 9, 10 and 11 and Part III shall come into operation on a day to be fixed by Proclamation.

Banking

Legislation

Amendment

No.

166,

1986

PART II—AMENDMENTS OF THE RESERVE BANK ACT 1959

Principal Act

3. The Reserve

Bank

Act

19591

is in this Part referred to as the

Principal Act.

4. Section 15 of the Principal Act is repealed and the following section

is substituted:

Remuneration of members

"15. (1) A member of the Board shall be paid such remuneration (if

any) as is determined by the Remuneration Tribunal.

"(2) A member of the Board shall be paid such allowances as are

prescribed.

"(3) This section has effect subject to the Remuneration

Tribunals

Act

1973.

"(4) A reference in this section to a member of the Board does not

include a reference to the Governor or the Deputy Governor.".

Governor and Deputy Governor

5. Section 24 of the Principal Act is amended by omitting sub-section

(2).

6. After section 24 of the Principal Act the following section is inserted:

Remuneration of Governor and Deputy Governor

"24A. (1) The Governor and the Deputy Governor shall be paid such

remuneration as is determined by the Remuneration Tribunal.

"(2) The Governor and the Deputy Governor shall be paid such

allowances as are prescribed.

"(3) This section has effect subject to the Remuneration

Tribunals

Act

1973.".

Functions of Department

7. Section 57 of the Principal Act is amended by omitting paragraphs

(1) (b) and (c) and substituting the following paragraphs:

"(b) co-operative associations; and

(c) associations of co-operative associations.".

8. After section 65 of the Principal Act the following section is inserted

in Part VI:

Banking

Legislation

Amendment

No.

166,

1986

Winding up of Rural Credits Department

"65A. ( 1 ) The Bank shall not make an advance, or discount a bill, under section 57 after the termination date.

"(2) Where, at a particular time, the Board is satisfied that a part (in this sub-section referred to as the 'surplus') of the capital or reserves of the Rural Credits Department is not required for the purposes of the operation of the Rural Credits Department after that time, the Board may determine that the whole or a part of the surplus be paid out of the Rural Credits Department.

"(3) Where, at a particular time after the termination date, the Board is satisfied that—

(a)

all debts due to the Bank in respect of advances made, or bills discounted, under section 57 have been fully and finally accounted for, whether by reason that the debts have been discharged, written off as bad debts or otherwise;

(b)

all loans made under section 60, and all advances made under section 61, have been repaid;

(c)

there will not be a net profit of the Rural Credits Department in the year in which the time occurred; and

(d)

the net profits of the Rural Credits Department in each of the years preceding that year have been dealt with in accordance with section 63,

the Board may determine that all of the money standing to the credit of the Rural Credits Department at that time (other than any money standing to the credit of the Rural Credits Development Fund) be paid out of the Rural Credits Department.

"(4) Before making a determination under sub-section (2) or (3), the Board shall consult with the Treasurer.

"(5) Where the Board makes a determination under sub-section (2) or (3), the Board shall inform the Treasurer accordingly.

"(6) As soon as practicable after the Treasurer is informed by the Board of the making of a determination under sub-section (2) or (3) in respect of an amount standing to the credit of the Rural Credits Department, the Treasurer shall, by notice in writing given to the Board—

(a) direct that the whole of the amount be paid to the Commonwealth;

(b)

direct that the whole of the amount be transferred to the credit of the Reserve Bank Reserve Fund; or

(c) direct that—

(i) a specified part of the amount be transferred to the credit of the Reserve Bank Reserve Fund; and

(ii) the remaining part of the amount be paid to the Commonwealth,

and the Board shall comply with the direction.

Banking Legislation Amendment

No. 166, 1986

"(7) Before giving a direction under sub-section (6), the Treasurer shall

consult with the Board.

"(8) Where, at a time after the Board complies with a direction given under sub-section (6) in relation to a determination under sub-section (3), the Board is satisfied that there is no money standing to the credit of the Rural Credits Department, the Board shall recommend to the Treasurer that action be taken to bring into effect the repeal of this Part.

"(9) Where—

(a)

the Board makes a determination under sub-section (3) in respect of an amount standing to the credit of the Rural Credits Department at a particular time; and

(b)

an amount would, but for this sub-section, be required to be placed to the credit of the Rural Credits Department after that time,

the amount referred to in paragraph (b) shall be placed to the credit of the

Reserve Bank Reserve Fund.

"(10) A reference in this section to the reserves or capital of the Rural

Credits Department is a reference to—

(a)

an amount that forms part of the capital of the Rural Credits Department;

(b)

an amount standing to the credit of the Rural Credits Department Reserve Fund; and

(c)

any other amount that forms part of the reserves of the Rural Credits Department,

but does not include a reference to an amount standing to the credit of the

Rural Credits Development Fund.

"(11) In this section, 'termination date' means 30 June 1988 or such

later date as the Treasurer, by notice in writing in the Gazette, determines.".

Repeal of Part VI

9. Part VI of the Principal Act is repealed.

Determination of net profits

10. Section 78 of the Principal Act is amended by omitting "or the

Rural Credits Department".

Repeal of Second Schedule

11. The Second Schedule to the Principal Act is repealed.

Formal and minor amendments

12. The Principal Act is amended as set out in the Schedule.

PART III—AMENDMENTS OF THE BANKING ACT 1959

Principal Act

13. The Banking Act 19592 is in this Part referred to as the Principal

Act.

Banking Legislation Amendment

No. 166, 1986

Balance-sheets and statements to be furnished by trading banks

14. Section 52 of the Principal Act is amended by omitting sub-section

(2).

Additional statements

15. Section 54 of the Principal Act is amended by omitting sub-section

(2).

Preparation and delivery of Forms

16. Section 55 of the Principal Act is amended by omitting from sub-

section (1) ", except in the case of a statement prepared by the Reserve

Bank,".

Certain statements to be published in the Gazette

17. Section 58 of the Principal Act is amended by omitting from sub-

section (2) "and in respect of the Rural Credits Department of the Reserve

Bank".

SCHEDULE

Section

12

F O R M A L

A N D

M I N O R

A M E N D M E N T S

O F

T H E

R E S E R V E

B A N K

A C T

1959

Sub-section 4 ( 2 ) —

Omit " T h e last preceding sub-section", substitute "Sub-section

( 1 ) ".

Sub-section 6A ( 2 ) —

Omit "1901-1973", substitute "1901".

Sub-section 7 ( 1 ) —

(a)

Omit "sub-section (1) of section 4", substitute "sub-section 4 ( 1 ) ".

(b) Omit "1911-1943", substi tute "1911". (c) Omit "1945-1953", substi tute "1945".

Sub-section

11 ( 7 ) —

Omit

"fifteen",

substi tute " 1 5 ".

Sub-section

12 ( 2 ) —

Omit "sub-section (1) of section 10", substitute "sub-section 10 ( 1 ) ".

Paragraph 14 (1) ( d ) —

Omit "seven", substitute " 7 ".

Sub-sections 14 (2), (3) and ( 4 ) —

Omit the sub-sections, substi tute the following sub-sections:

"(2) Of the 7 members appointed under paragraph (1) ( d ), at least 5 shall be

persons who are not officers of the Bank or of the Australian Public Service.

" ( 3 ) A member appointed under paragraph (1) (d) who is an officer of the Bank or of the Australian Public Service at the time of his or her appoin tment holds office during the pleasure of the Governor-Genera l.

Banking Legislation Amendment

No. 166, 1986

SCHEDULE—continued

" ( 4 ) A member appointed under paragraph (1) (d) who is not an officer of the

Bank or of the Austral ian Public Service—

(a)

shall, subject to sub-section (5), be appointed for a period of 5 years but is eligible for re-appointment; and

(b) holds office subject to good behaviour.".

Sub-section

14 ( 5 ) —

Omit "Public Service of the Commonwea l th", substi tute "Austral ian Public Service".

Section 16—

Insert "or he r" after "his".

Paragraph

17 ( a ) —

Omit "paragraph (d) of sub-section (1) of section 14", substitute "paragraph

14 (1)

( d ) ".

Sub-section

18 ( 1 ) —

(a)

Omit "paragraph (d) of sub-section (1) of section 14", substitute "paragraph

14 (1)

( d ) ".

(b)

Insert "or he r " after "h i s " (wherever occurr ing).

Paragraph

18 (1) ( d ) —

(a)

Omit

" t w o ", substi tute

" 2 ".

(b)

Omit " th ree", substitute " 3 ".

(c)

Omit " twelve", substi tute "12".

Sub-section

18 ( 2 ) —

Omit " twelve", substitute "12".

Section

2 0 —

(a)

Omit

" C h a i r m a n "

(wherever occurr ing), substitute

"Chai rperson".

(b) Add at the end the following sub-sections:

" (2 ) The Chairperson may be referred to as the Cha i rman or Chai rwoman,

as the case requires.

" (3 ) The Deputy Chairperson may be referred to as the Deputy Chai rman

or Deputy Cha i rwoman, as the case requires.".

Sub-sections 21 (1), (2) and ( 3 ) —

Omit

" C h a i r m a n "

(wherever

occurring), substi tute

"Chai rperson".

Sub-section 21 ( 2 ) —

Insert "or she" after

" h e ".

Sub-section 21 ( 3 ) —

Omit "Six", substitute " 6 ".

Sub-section

23 ( 1 ) —

(a)

Omit "twenty-five", substitute " 2 5 ".

(b) Omit "his interest", substitute " the member 's interest".

(c) Omit "he", substi tute " the member".

(d) Omit "his knowledge", substitute " the knowledge of the member".

Sub-section 23 ( 2 ) —

Omit " the last preceding sub-section", substitute "sub-section ( 1 ) ".

Banking Legislation Amendment

No. 166, 1986

S C H E D U L E — c o n t i n u e d

Paragraph 24 (1) ( b ) —

Omit "seven", substi tute " 7 ".

Section

2 5 —

Insert "or he r " after "h i s " (wherever occurr ing).

Paragraph 28 ( a ) —

Omit "1945-1953", substitute "1945".

Paragraph 28 ( b ) —

Omit " the next succeeding section", substitute "section 29".

Paragraph

2 9 ( 1 )

( a ) —

Omit "1945-1953", substi tute "1945".

Paragraph

2 9 ( 1 )

( b ) —

Omit " the next succeeding section", substitute "section 30".

Section 32 (definition of "Australian note")—

Omit the definition, substi tute the following definition:

" ' A u s t r a l i a n

note '

means

a

note

issued

under

the

Australian

Notes

Act

1910,

under Part VII of the Commonwealth

Bank Act 1911, under Part VI of the

Commonwealth

Bank Act 1945 or under this Part as in force at any t ime;".

Sub-section 36 ( 2 ) —

Omit " the last preceding sub-section", substitute "sub-section (1 ) ".

Section

3 9 —

Omit "1945-1953", substi tute

"1945".

Sub-section 41 ( 2 ) —

(a)

Omit " twen ty", substitute "20".

(b)

Omit "forty", substi tute "40".

Section 4 2 —

Omit " T w o hundred dollars", substitute "$200".

Sub-section 44 ( 1 ) —

Omit " O n e thousand dollars", substitute "$1,000".

Sub-section 57 ( 2 ) —

(a)

Omit " the last preceding sub-section", substi tute "sub-section ( 1 ) ".

(b)

Omit "paragraph (a), (b) or (c) of that sub-section", substitute "paragraph (1)

(a ),

(b)

or

( c ) ".

Sub-section 57 ( 4 ) —

Omit " to this Act".

Paragraph 59 ( a ) —

Omit "1945-1953", substi tute

"1945".

Section

6 0 —

Omit "Six million dollars", substi tute "$6,000,000".

Paragraph 62 (1) ( a ) —

Omit "1945-1953", substitute "1945".

Banking Legislation Amendment

No. 166, 1986

S C H E D U L E — c o n t i n u e d

Paragraph 62 (1) ( b ) —

Omit " the next succeeding section", substi tute "section 6 3 ".

Paragraphs 68 (1) (a) and ( b ) —

Insert

"or s h e " after

" h e ".

Paragraph 68 (1) r e -

insert "or he r" after "his".

Paragraph 71 (2) r e -

insert

"or s h e " after

" h e ".

Sub-section 71 ( 3 ) —

Omit "One thousand dollars", substitute "$1,000".

Section

7 2 —

(a) Omit "sixty", substitute "60".

(b)

Omit "sixty-five", substi tute " 6 5 ".

Paragraph 72 ( a ) —

Omit "1945-1953", substi tute "1945".

Paragraph 72 ( b ) —

(a)

Insert "or he r" after "his".

(b)

Insert "or s h e " after " h e ".

Sub-paragraphs 72 (e) ( i ), (ii) and

( i i i ) —

Omit "h im", substi tute " the

person".

Section

7 6 —

Insert

"or s h e " after

" h e ".

Section

7 7 —

Insert "or h e r " after "his".

Sub-section

80

r e -

insert "o r he r " after

"his".

Sub-section 80 ( 2 ) —

Omit " t he last preceding sub-section", substitute "sub-section ( 1 ) ".

Sub-sections 80 (3), (4) and ( 5 ) —

Omit

" h i m "

(first

occurr ing), substi tute

" the

Audi tor -Genera l".

Sub-section 80 ( 5 ) —

Omit "furnish him", substi tute "furnish the Audi tor-General or the officer, as the

case may be,".

Sub-section 81 ( 2 ) —

(a)

Insert "or he r " after "his".

(b)

Omit " the last preceding sub-section", substi tute "sub-section ( 1 ) ".

Section

8 9 —

Omit " O n e hundred dollars", substi tute "$100".

Banking Legislation Amendment

No. 166, 1986

NOTES

1. N o. 4, 1959, as amended. Fo r previous amendments, see N o. 96, 1965; N o. 93, 1966; Nos. 118 and 216, 1973; N o. 36, 1978; N o. 155, 1979; N o. 70, 1980; N o. 122, 1981; Nos. 63 and 76, 1984; and No. 65, 1985.

2. No. 6, 1959, as amended. For previous amendments, see No. 127, 1965; No. 93, 1966; No. 84, 1967; Nos. 116, 193 and 216, 1973; No. 132, 1974; No. 156, 1977; No. 78, 1978; No. 19, 1979; No. 80, 1982; and No. 76, 1984.

N O T E

A B O U T

S E C T I O N

H E A D I N G

1. The heading to section 20 of the Reserve Bank Act 1959 is altered to "Chairperson and Deputy Chairperson".

[Minister's

second reading speech made

in—

House of Representatives

on 24 September

1986

Senate on 15 October

1986]

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