Co-operative Societies (Amendment) Act 1979 (ACT)
No. 35 of 1979
An Ordinance to amend the Co-operative Societies Ordinance 1939
I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Ordinance under the Seat of Government (Administration) Act 1910.
Dated this twenty-second day of November 1979.
ZELMAN COWEN
Governor-General
By His Excellency's Command,
R. ELLICOTT
Minister of State for the Capital Territory
| CO-OPERATIVE | SOCIETIES | ( A M E N D M E N T ) | ORDINANCE |
| 1979 |
1. This Ordinance may be cited as the Co-operative Societies
| (Amendment) | Ordinance | 1979.1 |
| Societies Ordinance 1939.2 | 2. In this Ordinance, "Principal Ordinance" means the Co-operative |
3. Section 4 of the Principal Ordinance is amended by inserting after the definition of "officer" in sub-section (1) the following definition:
(b) receiving moneys on deposit;"; and
" 'prescribed bill of exchange' means a bill of exchange—
(a) that is drawn by a society in favour of itself; (b)
that has been accepted by the person on whom it is drawn; and
(c)
under which the date for payment is either fixed or deter minable at the time the bill is drawn;" .
4. Section 14CE of the Principal Ordinance is amended—
(a)
by omitting paragraph ( 2 ) ( b ) and substituting the following paragraphs:
" ( a a ) raising moneys by negotiating prescribed bills of
exchange;
(b)
by omitting paragraph ( 3 ) ( b ) and substituting the following paragraphs:
" ( a a ) raise moneys by negotiating a prescribed bill of
exchange;
(b) receive moneys on deposit;".
5. Section 16A of the Principal Ordinance is amended by inserting
after paragraph (a) the following paragraph:
" ( a a ) raise money by negotiating prescribed bills of exchange;". 6. (1) Section 23A of the Principal Ordinance is amended—
(a) by inserting before the definition of "commitments" in sub section (2) the following definition: " 'acceptance agreement ' means an agreement entered into between a registered credit society and another person under which the other person agrees to accept, during the term of the agreement, bills of exchange drawn by the so ciety upon that person;";
(b )
by omitting " a n d " (last occurring) from paragraph (b) of the definition of "commi tmen t s" in sub-section (2);
(c)
by inserting after paragraph (b) of the definition of "commit m e n t s " in sub-section (2) the following paragraphs:
" ( b a ) where the society is authorized by its Rules to raise money by negotiating prescribed bills of exchange and, in pursuance of that authority, the society has negotiated a prescribed bill of exchange, not being a bill to which an acceptance agreement applies, but the bill has not become due for payment—an amount ascertained in accordance with the formula—
A X B
C
(bb) where the society is authorized by its Rules to raise money by negotiating prescribed bills of exchange and, in pursuance of that authority, the society has negotiated a prescribed bill of exchange, being a bill to which an acceptance agreement applies, but the bill has not become due for payment—an amount ascertained in accordance with the formula—
/ D X E \ / G X H \
and '
F / V I
(d)
by inserting ", not being prescribed bills of exchange," after "bills of exchange" in paragraph (b) of the definition of "liquid funds " i n sub-section (2);
(e) by inserting after sub-section (2) the following sub-sections: "(2A) For the purpose of the application in relation to a prescribed bill of exchange of the formula contained in para graph (ba) of the definition o f ' commi tments ' in sub-section ( 2 ) -
A is the amount of the bill;
B is the number of months that has elapsed since the bill was
drawn; and
C is the number of months in the period commencing on the date on which the bill was drawn and ending on the date on which the bill becomes due for payment.
"(2B) For the purpose of the application in relation to a prescribed bill of exchange to which an acceptance agreement applies of the formula contained in paragraph (bb) of the definition of 'commitments ' in sub-section (2 )—
D is the amount of the bill;
E is the number of months that has elapsed—
(a) since the bill was drawn; or (b) where the bill forms part of a roll-over arrangement—since the first bill in that arrange
ment was drawn;F is—
(a)
the number of months remaining in the term of the acceptance agreement at the time the bill is drawn; or
( b ) where the bill forms part of a roll-over arrangement—the number of months that were remaining in the term of the acceptance agree ment at the time the first bill in that arrangement was drawn;
G is the aggregate of—
(a)
the amount determined by deducting from the amount of the bill the amount that was, upon the negotiation of the bill, paid by the transferee; and
(b)
the amount paid by the society to the drawee of the bill by way of a fee for the arrangement by the drawee of the negotiation of the bill;
H is the number of months that has elapsed since the bill was
drawn; and
I is the number of months in the period commencing on the date on which the bill was drawn and ending on the date for payment of the bill.' '; and
(f) by adding at the end thereof the following sub-section:
" ( 5 ) For the purposes of sub-section (2B)— (a) a prescribed bill of exchange shall be taken to form part of a roll-over arrangement if— (i) upon payment of the bill, the registered credit so ciety by which the bill was drawn pays to the ac ceptor of the bill the amount of the bill;
(ii) the amount so paid by the society is obtained, wholly or in part, from money raised by it by the negotiation of another bill of exchange drawn by it; and
(iii) that other bill is a bill to which applies the accept ance ag reement that applied to the first- mentioned bill; and
(b) a prescribed bill of exchange shall be taken to form part of a roll-over arrangement if— (i) the whole or a part of the amount raised by the registered credit society by which the bill is drawn by the negotiation of the bill is, following the pay ment of another bill of exchange previously drawn by it, applied in or towards payment to the acceptor of that other bill of the amount of that bill; and
(ii) that other bill is a bill to which applied the accept ance ag reemen t that appl ies to the first- mentioned bill.".
(2) Section 23A of the Principal Ordinance is amended— (a )
by omitting "this Ordinance, investments of a kind referred to in paragraph ( c ) " from paragraph (d) of the definition of "liquid funds" in sub-section (2) and substituting " the Co-operative Societies Ordinance (No. 2) 1975, investments in securities authorized by law for the investment of trust funds (other than securities by way of mortgage over real or leasehold property)"; and
(b)
by omitting "this Ord inance" from sub-paragraph (d) (i) of the definition of "liquid funds" in sub-section (2) and substituting
" that Ordinance". (3) The amendments made by sub-section (2) shall be deemed to
have come into operation on 23 June 1975.
7. Section 35 of the Principal Ordinance is amended—
| (a) | by omitting from sub-section (1) "on l o a n " and substituting " , whether on loan or by negotiating prescribed bills of exchange"; |
| (b ) |
by omitting from sub-section (1) all words from and including " b u t -
(a)
where the society is authorized to raise money on l o a n - may so raise money by mortgage of any of its real or per sonal property or of its uncalled capital or by the issue of bonds or otherwise; and
(b)
where the society is authorized to raise money by nego tiating prescribed bills of exchange—may give any secur ity to, or enter into any arrangement with, the person upon whom it proposes to draw, or has drawn, a bill of exchange for the purpose of raising money by the nego tiation of the bill that the society could give or enter into under paragraph (a) in connection with the raising of money by it on loan' ' ; and
(c)
by omitting from sub-section (3) "as security for money raised on loan or received on deposi t ." and substituting the following:
"as securi ty- l a ) for money raised on loan; (b) in connection with a prescribed bill of exchange; or (c) for money received on deposit. ' ' .
8. Section 36 of the Principal Ordinance is amended—
(a) by omitting sub-section (1) and substituting the following sub-section:
" ( 1 ) Where a society is authorized by its Rules to raise money, whether on loan or by negotiating prescribed bills of exchange, or to receive money on deposit, the society—
(a)
shall not raise or receive money except in accordance with the limits provided in this section;
(b)
shall apply any money so raised or received for the pur poses of the society; and
(c)
in the case of money raised on loan or received on deposit—may so raise or receive the money at interest.";
(b )
by omitting from sub-section (2) "The total amount so raised or received, and not repaid by the society," and substituting "The aggregate of the amounts remaining unpaid by a society in re spect of loans made to, or deposits received by, the society and the amounts payable under prescribed bills of exchange nego tiated by the society";
(c)
by omitting from sub-section (3) all words from and including "Notwi ths tanding" to and including "may be such s u m " and substituting the following:
"Notwithstanding sub-section (2), the aggregate of—
(a)
the amounts remaining unpaid by a society in respect of loans made to, or deposits received by, the society; and
(b)
the amounts payable under prescribed bills of exchange negotiated by the society,
may be such sum";
(d ) by inserting in sub-section (5) "on loan" after "raise money"; (e) by omitting from sub-section (5) "Two hundred dollars" and substituting "$2 ,000" ; (f) by inserting after sub-section (5) the following sub-section: " ( 5 A ) A society shall not raise money by negotiating prescribed bills of exchange so that, at any one time, the aggre gate of the amounts payable under those bills exceeds $2,000 unless a higher aggregate amount has been approved by special resolution of the society.";
(g) by inserting in sub-section (7) "or in connection with a prescribed bill of exchange "af ter "for a loan or deposit"; (h) by omitting from sub-section (7) "receive loans or deposits" and substituting "raise money or receive deposits"; and (i) by omitting sub-section (8) and substituting the following sub-section:
" ( 8 ) A person who lends or pays money to, or deposits money with, a society is not bound—
(a) to see to its application; or
(b)
to see that the society has not exceeded the limits pro vided in respect of the society for the borrowing or rais ing of money by it.".
9. Section 42 of the Principal Ordinance is amended by omitting
paragraph (2) (b ) and substituting the following paragraphs:
" ( b ) a register of loans raised by the society and securities given by it
in connection with those loans;(ba ) a register of bills of exchange negotiated by the society for the purpose of raising money and securities given by it in connection with those bills: (bb) a register of bonds issued by the society; (be) a register of deposits received by the society;".
10. Section 43 of the Principal Ordinance is amended—
| (a) | by omitting from paragraph (d) " a n d " (last occurring); and | |
| (b) | by omitting paragraph (e) and substituting the following paragraphs: | |
|
(f) the prescribed register of bills of exchange negotiated by the society for the purpose of raising money and securi ties given by it in connection with those bills; and (g) the prescribed register of bonds issued by the society.".
11. Section 49 of the Principal Ordinance is amended by omitting from paragraph (1) (v) "borrowing power s " and substituting "powers authorizing the raising of money".
12. Section 69 of the Principal Ordinance is amended by omitting from sub-section ( 1 ) "on l o a n " and substituting " , whether on loan or by negotiating prescribed bills of exchange,".
N O T E S
1. Notified in the Commonwealth of Australia Gazetteon 28 November 1979.
2. Ordinance No. 9, 1939 as amended by No. 1, 1946; No. 14, 1950; No. 14, 1954; No. 10, 1956; No. 18, 1958; Nos. 3 and 7, 1962; No. 10, 1963; No. 18, 1966; No. 6, 1972; Nos. 16 and 29, 1973; Nos. 35 and 47, 1974; Nos. 13 and 15, 1975; No. 14, 1977; and No. 46,1978.
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