Commonwealth Inscribed Stock Act 1911
No. 20, 1911
Compilation No. 21
Compilation date: 20 October 2023
Includes amendments up to: Act No. 76, 2023
Registered: 10 November 2023
About this compilation
This compilation
This is a compilation of the Commonwealth Inscribed Stock Act 1911 that shows the text of the law as amended and in force on 20 October 2023 (the compilation date).
The notes at the end of this compilation (the endnotes) include information about amending laws and the amendment history of provisions of the compiled law.
Uncommenced amendments
The effect of uncommenced amendments is not shown in the text of the compiled law. Any uncommenced amendments affecting the law are accessible on the Register (www.legislation.gov.au). The details of amendments made up to, but not commenced at, the compilation date are underlined in the endnotes. For more information on any uncommenced amendments, see the Register for the compiled law.
Application, saving and transitional provisions for provisions and amendments
If the operation of a provision or amendment of the compiled law is affected by an application, saving or transitional provision that is not included in this compilation, details are included in the endnotes.
Editorial changes
For more information about any editorial changes made in this compilation, see the endnotes.
Modifications
If the compiled law is modified by another law, the compiled law operates as modified but the modification does not amend the text of the law. Accordingly, this compilation does not show the text of the compiled law as modified. For more information on any modifications, see the Register for the compiled law.
Self‑repealing provisions
If a provision of the compiled law has been repealed in accordance with a provision of the law, details are included in the endnotes.
Contents
Part I—Preliminary
1 Short title
3 Interpretation
Part II—Creation and issue of stock
3A Authority to borrow
4 Power to create stock
7 Issue of stock
11 When interest to cease
13 Stock personal property
13AA Payment of principal and interest on stock and related amounts connected with depository interests
13A Costs and expenses relating to issue, sale and management of stock and depository interests
13B Costs and expenses incurred in repurchasing or redeeming stock before date of maturity
13C Arrangements etc. relating to stock and depository interests
Part III—Inscription of stock
Division 1—Registries and Registrars
14 Establishment of registries and appointment of Registrars
Division 2—Inscription of stock
15 Stock to be inscribed
16 Limit of number of names
17 Stock certificates
18 Owner of legal interest in stock
19 Protection of Registrar in relation to trusts
20 Preservation of equitable interests
21 Stock may not be inscribed in the names of persons under 16 years of age
21A Stock held in official capacity
22 Receipts for interest
22A Inscription in name of Friendly Society or Trade Union
22B Inscription of stock in name of unincorporated associations
Division 3—Transfers and transmissions
23 Transfer to another registry
24 Transfer of stock
24A Transfer of certain interests in…
Overview
The Commonwealth Inscribed Stock Act 1911 was enacted to provide for the creation, issuance, and management of government securities, such as bonds and stock, by the Commonwealth of Australia. The Act was introduced to address the need for a structured legal framework for the issuance of government securities to facilitate the raising of funds for various government purposes. This Act was enacted by the Australian Parliament and has been subject to several amendments over the years to adapt to changing economic conditions and legal requirements. The primary policy objective of the Act is to ensure the effective and lawful issuance of government securities, providing a means for the Commonwealth to borrow money and manage its financial obligations. The Act delineates the processes for creating and issuing stock, the roles of various officials and entities in this process, and the legal implications of stock ownership and transfer.
Scope and Application
The Commonwealth Inscribed Stock Act 1911 applies to the issuance and management of Commonwealth stock, bonds, Treasury Notes, Treasury Bonds, and other prescribed securities by the Commonwealth of Australia. The Act empowers the Treasurer to borrow money on behalf of the Commonwealth through the issuance of stock, as well as to create and issue stock, Treasury Bonds, and other securities for various purposes such as raising loans, converting loans, and paying expenses. The Act also details the procedures for inscribing stock, including the establishment of registries and the appointment of Registrars, and outlines the rules for the transfer, transmission, and ownership of stock. It further addresses the legal provisions related to the handling of stock, including the admissibility of certain documents as evidence and the preservation of equitable interests. The Act imposes penalties for offenses such as false personation, falsification of documents, and breaches of terms related to Treasury Bonds. The Act's provisions extend to the creation, issuance, and management of Treasury Bonds and other prescribed securities, including their conversion and repurchase. The Act allows for delegations and authorizations of certain powers to the Treasurer and other officials, with regulations detailing specific matters and forms required for the administration of stock. The Act also includes miscellaneous provisions concerning investments in stock, the exemption of certain documents from stamp duty, the taxation of interest derived from loans, and the maintenance of records of unclaimed interest.
Key Provisions
- The Commonwealth Inscribed Stock Act 1911 provides the legal framework for the creation, issue, and management of Commonwealth stock. Section 3A of the Act authorises the Treasurer to borrow money on behalf of the Commonwealth by issuing stock denominated in Australian currency. The Governor-General has the authority to create stock, Treasury Bonds, Treasury Notes, or other prescribed securities for various purposes, including raising money by way of loan, converting loans, and paying expenses related to the Act (Section 4). Stock can be issued and sold in the manner, at the prices, and on the terms and conditions as directed by the Governor-General (Section 7). The Act mandates that all issued stock must be inscribed in a Stock Ledger at a Registry, detailing the owner's name and the amount of stock, among other prescribed particulars (Section 15). The Act imposes obligations on the parties involved, including the requirement for the Registrar to issue certificates to the owners of legal interests in stock upon request (Section 17) and the obligation of the Consolidated Revenue Fund to cover the payment of principal, interest, and related amounts (Sections 13AA and 13A). Failure to comply with the Act can result in significant penalties. For instance, falsely personating any person entitled to the legal interest in any stock or to any money payable in respect of any stock is an indictable offence, carrying a maximum penalty of imprisonment for 10 years (Section 49). Similarly, the falsification of books or documents relating to stock is also an indictable offence, with the same maximum penalty (Section 50). Additionally, breaching the terms or conditions of the issue of Treasury Bonds, Debentures, or other prescribed securities is an offence, with penalties including imprisonment for up to 6 months, a fine of up to 2 penalty units, and an additional fine equal to 10% of the nominal value of the security in respect of which the offence is committed (Section 51BA).
- Area of Law
- Finance & Banking Law
- Public Finance Law
- Instrument
- Act
- Concepts
- Definitions & Interpretation
- Delegations and authorisations
- Penal provisions
- Reporting & Disclosure Obligations
- Licensing & Registration
- Regulatory Standards
