Commonwealth Savings Bank of Australia Agreement Act of 1966 (Qld)

7 Q u>r lsfimu ANNO QUINTO DECIMO ELIZABETHAE SECUNDAE REGINAE No. 3 of 1966 An Act with Respect to an Agreement between Commonwealth Savings Bank of Australia and The State of Queensland [ASSENTED TO 27TH SEPTEMBER, 1966] BE IT ENACTED by the Queen' s Most Excellent Majesty, by and with the advice and consent of the Legislative Assembly of Queensland in Parliament assembled , and by the authority of the same, as follows:- 1. Short title . This Act may be cited as "The Commonwealth Savings Bank of Australia Agreement Act of 1966." 2. Execution of Agreement authorised . The Treasurer is, and it is hereby declared always was, authorised to execute, for and on behalf of the State of Queensland, with Commonwealth Savings Bank of Australia, the Agreement a copy whereof is set out in the Schedule to this Act. 3. Agreement ratified and to have force of law . The said Agreement is hereby ratified and the provisions thereof shall have, and it is hereby declared always have had as from the date of the making thereof, the force of law as though it were an enactment of this Act.

S Commonwealth Savings Bank, Etc., Agreement Act of 1966, No. 3 SCHEDULE THIS INDENTURE made the eighth day of September One thousand nine hundred and sixty -six BETWEEN COMMONWEALTH SAVINGS BANK OF AUSTRALIA ( hereinafter called the Savings Bank ) of the one part and THE STATE OF QUEENSLAND ( hereinafter called the State ) of the other part WHEREBY IT IS AGREED AS FOLLOWS:- 1. As from the first day of July One thousand nine hundred and sixty-five the State shall be entitled to borrow from the Savings Bank and the Savings Bank shall lend to the State if requested by the State so to do such sum or sums of money not exceeding seventy per centum (70%) of the net quarterly increase in the amount of Savings Bank depositors' balances in Queensland. The Savings Bank shall as soon as practicable notify the State of the net increase in depositors' balances in each quarter ending on the last days of September December March and June in each year and in computing the said net increase interest credited by the Savings Bank to depositors' accounts in the said State during the relative quarter shall be regarded as deposits. In the event of the said depositors' balances decreasing in any quarter or quarters the amount of the said decrease or decreases shall be set off against subsequent increases in computing the amount to be borrowed hereunder. 2. The Savings Bank shall be entitled to retain or invest as it thinks fit such part of the seventy per centum referred to in Clause I hereof as is not required to be borrowed by the State pursuant to that Clause or which is not required to be lent pursuant to Clause 4 hereof. Such requirement shall be notified to the Savings Bank as soon as practicable after receipt by the State of a notification given pursuant to Clause 1 hereof. 3. To secure repayment of moneys lent pursuant to Clause I hereof the State shall arrange for the issue to the Savings Bank of securities of the Commonwealth of Australia equal in face value to the sums so lent. 4. Upon being notified of a quarterly increase in depositors' balances pursuant to Clause 1 hereof the State may at its option direct the Savings Bank to retain an amount not exceeding in all two-sevenths of the borrowing entitlement provided for in the said Clause 1 and to apply the amount so retained in making loans to such local government or semi -government authorities (including the Queensland Housing Commission and the Corporation of the Agricultural Bank) as are nominated by the State and accepted by the Savings Bank. Loans granted pursuant to this Clause shall not operate in restriction of the normal lending operations of the Savings Bank applicable from time to time to such bodies and shall be on the terms and conditions currently applied by the Savings Bank in its normal course of business in respect of loans to such authorities and shall be secured by securities of the respective borrowing authority for the sum so lent and supported by a guarantee by the State to repay the moneys so lent and to pay the interest thereon. From the said amount representing two-sevenths of the borrowing

Commonwealt hs Savings Bank, Etc., Agreement Act of 1966, No. 3 entitlement the State may require the Savings Bank to lend on its usual terms and conditions amounts not exceeding in all one-seventh of the said borrowing entitlement direct to persons who are purchasing dwelling- houses from the said Queensland Housing Commission and who are selected by the Savings Bank. 5. Any amounts lent by the Savings Bank pursuant to Clause I hereof shall bear interest at a rate per centum per annum being one and three-eighths per centum (IJ-%) above and varying with the highest rate of interest allowed by the Savings Bank to its depositors from time to time during the currency of a loan. Provided however that if the per centum per annum yield to maturity on the longest term series of the public loan last floated in Australia by the Commonwealth Government prior to the respective dates on which the right to borrow arises under this Agreement is less than one and one-half per centum (14-%) per annum above the highest rate of interest at the said respective dates allowed by the Savings Bank to its depositors the rate of interest payable on any such loan shall be fixed at one-quarter of one per centum (i%) per annum below the per centum per annum yield to maturity payable on the relevant public loan hereinbefore referred to. 6. Loans made pursuant to Clause 1 hereof shall provide for a repayment period of twenty years. Provided however that in respect of loans the interest rate on which is determined pursuant to Clause 5 hereof by reference to a relevant public loan the period of repayment shall be fixed at the number of complete years not exceeding twenty closest to the term of the said relevant public loan. 7. Loans made pursuant to Clause 1 hereof shall be repaid by half- yearly instalments of principal ant', interest. Each half-yearly repayment of principal except the last shall be determined at the commencement of each loan as if the loan were to be repaid in full over a period of fifty- three years by one hundred and six equal half-yearly instalments of principal and interest at the original interest rate of the loan. The last half-yearly repayment of principal shall be the amount thereof still outstanding on the loan. Each half-yearly payment of interest shall be calculated on the amount of principal moneys outstanding at the commencement of each half-yearly period at the rate of interest hereinbefore provided. 8. The Savings Bank will on or before their respective dates of maturity offer to renew loans of the following classes which mature during the currency of this Agreement-- (i) loans made to the State pursuant to any previous agreement between the parties hereto including renewals of such loans, (ii) loans made to the Queensland Housing Commission and the Corporation of the Agricultural Bank pursuant to any previous agreement between the parties hereto, (iii) loans made to the State pursuant to Clause 1 hereof, (iv) loans previously renewed pursuant to this Clause.

10 Commonwealth Savings Batik, Etc., Agreement Act of 1966, No. 3 The following terms and conditions shall apply to loans renewed pursuant to this Clause- (a) the amount of a renewed loan shall be the amount of principal moneys outstanding on the maturing loan at its maturity date less the amount of principal moneys included in the half-yearly instalment falling due immediately prior to the last instalment, (b) the rate of interest shall be one and three-eighths per centum above and varying with the highest rate of interest allowed by the Savings Bank to its depositors from time to time and the term of repayment thereof shall be ten years except in the case of the renewal of a loan where the funds were originally made available forty years or more prior to the date of renewal in which case the term of repayment shall be such period as to make the loan repayable at the expiration of fifty-three years from the date the funds of the original loan were made available, (c) a renewed loan shall be repayable in the manner provided in Clause 7 hereof except that repayments of principal moneys shall be calculated as if it were to be repaid in full in fifty- three years from the date. the funds of the maturing loan were originally made available by the Savings Bank. 9. The Savings Bank shall keep a separate account of its business in the State of Queensland and any resultant profit or loss on such business shall after each yearly balance has been struck be equally divided between or borne by the Savings Bank and the State. 10. The State undertakes and agrees with the Savings Bank during the currency of this Agreement that- (a) so long as the Savings Bank or its successors carries on savings bank business in the State of Queensland no savings bank will be established or conducted in the said State by or under the State, (b) the State will in every possible way aid, assist and further the interests of the Savings Bank in the conduct of its banking business in the State of Queensland. 11. Subject to its ratification by the Parliament of the State this Agreement shall commence on the first day of July One thousand nine hundred and sixty-five and shall continue in force for a term of twenty years thereafter. 12. Each of the parties hereto shall at the expiration of each period of five years of the term of the Agreement have the right to consult with the other party for the purpose of obtaining variations of the terms of this Agreement on the basis that by reason of an alteration in circumstances the Agreement is operating to the detriment of the. parties or either of them. For the purposes of such consultation the parties hereto shall respectively be represented by the General Manager for the time being of the Savings Bank and by the Treasurer for the time being of the State. Such variations as are agreed upon following such consultation shall be subject to the approval of the Governor in Council by Order in Council.

Commonweaith Sayings Bank, Etc., Agreement Act of 1966, No. 3 11 IN WITNESS WHEREOF the parties have executed these presents the day and year first above written. SIGNED SEALED and DELIVERED by IsAAc RICHARD NORMAN , General Manager of Commonwealth Savings I. R. NORMAN Bank of Australia for and on behalf of that Bank in the presence of- i A. W. HENCE SIGNED SEALED and DELIVERED by GORDON WILLIAM WESLEY CHALK the Treasurer of the State of Queensland for and on behalf of that State in the presence of- J. A. SEWELL GORDON W. CHALK