Debt Conversion Agreement (No 2) Act 1931 (NSW)

DEBT CONVERSION

AGREEMENT (No. 2) ACT.

Act No. 60, 1931.

An Act to approve an Agreement between the Commonwealth of Australia of the first part, the States of New South Wales, Victoria, Queensland, South Australia, Western Australia, and Tasmania of the second, third, fourth, fifth, sixth, and seventh parts respectively, relating to the conversion of that portion of the internal public debts of the Commonwealth and the States which was not converted under the provisions of the Commonwealth Debt Con­ version Act, 1931; to repeal the Debt Con­ version (Further Agreement) Act, 1931; and for purposes connected therewith or incidental thereto. [Assented to, 7th Decem­ ber, 1931.]

" I T T H E R E A S b y section 105A of t h e C o m m o n w e a l t h

( 2 )

H of Aus t ra l i a Cons t i tu t ion A c t i t is provided t h a t

t h e Commonwea l th m a v m a k e A g r e e m e n t s w i t h the

States w i t h respect to t h e publ ic debts of t h e Sta tes ,

i nc lud ing ( in ter alia) t h e consolidation, renewal , con­ version, and r edempt ion of those debts : Be it enac ted b y t h e K i n g ' s Mos t Exce l l en t Majesty , by and wi th t h e advice and consent of t he Legis la t ive Counci l and Legis la t ive Assembly of N e w South Wales in Par l ia ­

m e n t assembled, and by	t h e	a u t h o r i t y	of t he same, as
fo l lows :—

1. (1) This A c t m a y be ci ted as t h e " D e b t Conver­

sion	A g r e e m e n t	(No .	2)	Act ,	1 9 3 1 . "
(2)	The	Deb t	Conversion	( F a r t h e r	A g r e e m e n t ) '

Ac t , 1931 , is hereby repealed.

1. This A c t shall commence on a da te to be appo in ted

by t h e Governor a n d notified by proc lamat ion pub l i shed

in t h e Gazet te .

1. The A g r e e m e n t , a copy of which is set for th in t he

Schedule to this Act , is approved.

T H E S C H E D U L E .

A G R E E M E N T made the twenty-second day of October one thousand

nine hundred and th i r ty-one between the Commonweal th of Aus t r a l i a (in this Agreemen t called " the Commonweal th ") of the first pa r t t he S t a t e of New South W a l e s of the second pa r t the S t a t e of Victor ia of the th i rd p a r t the S ta te of Queensland of t he fourth p a r t t h e S ta te of South Aus t ra l i a of the fifth p a r t t he S t a t e of W e s t e r n Aus t ra l i a of the sixth p a r t and the S t a t e of Tasmania of t he seventh par t ( the expression " the Sta tes " in this A g r e e m e n t meaning where the context so permits or requires all of the par t ies of the second, th i rd , fourth, fifth, s ixth and seventh

pa r t s ) :

W h e r e a s by section 105A of the Const i tu t ion it is provided

t h a t the Commonwealth may m a k e Agreements wi th the Sta tes wi th respect to t he public debts of the Sta tes , including ( inter al ia) t he consolidation, renewal , conversion and redemption of

such d e b t s :

A n d whereas by an Agreement made the twenty-first dav of

J u l y one thousand nine hundred a n d th i r ty-one between the

par t ies here to t he Commonweal th was author ised to a r r ange and

effect a conversion, on t he basis of a 22J- per cent , reduct ion of in teres t , in accordance wi th the t e rms and condit ions now con­ ta ined in sections 3, 8 and 10 to 22 inclusive of the Common­ wea l th D e b t Conversion A c t 1931 (hereinafter called " the said A c t " ) of all public debts of the S ta tes t he l iabil i ty for which has been assumed by the Commonweal th unde r the F inanc ia l Agreemen t between the par t i es hereto dated the twelfth day of December one thousand nine hundred and twenty-seven and the principal and in teres t of which are payable in Aus t ra l i a and of all public debts of the Commonweal th ( including borrowings by t h e Commonweal th for or on behalf of a S t a t e unde r the said F inancia l

A n d whereas by the said A c t provision lias been made for the conversion in to new securities of exis t ing securit ies, comprised in t h e said public debts , t h e holders of which did not, within t he t ime and in the manner prescribed, signify dissent from the conversion :

A n d whereas approximate ly ninety-seven per centum of exis t ing securities have been converted u n d e r t he said Act , a n d it is expedient t h a t the remainder of t he exis t ing securities should be converted on the same te rms and condit ions :

Now this Agreemen t wi tnesse th :

1. This Agreemen t shall have full force and effect, and shall b e b ind ing on all t he par t ies , when i t is approved by the Pa r l i amen t s of

t he Commonweal th and of the Sta tes .

2. I n this Agreemen t t he t e rms " exis t ing secur i t i e s " and " new

securities " have the same meaning as in the said Act .

3 . N o t w i t h s t a n d i n g any th ing in the above-recited D e b t Conversion

Agreemen t or in the said A c t conta ined, every holder of exis t ing securities which have not been conver ted in to new securities in accord­ ance wi th the provisions of t he said A c t shall, no twi ths tand ing t h a t any holder of those exist ing securities may have signified or may signify dissent , be deemed to have made an applicat ion in accordance wi th section 9 of t he said A c t for their conversion in to new securities, and they shall be deemed to be so converted accordingly :

Provided t h a t no th ing in th is clause shall apply to Commonweal th

Treasury Bills issued to a bank in Aus t ra l i a wi th t he approval of the Aus t r a l i an Loan Council or to securities issued wi th the like approval to such a bank in exchange for such bills.

4. T h e Government of the Commonweal th will t a k e the necessary action to submi t to t he Federa l Pa r l i amen t any legislation	necessary
to car ry ou t and give effect to th is Agreemen t .

5. So far as th i s Agreement may no t be in accordance wi th t h e provisions of t h e said Financia l A g r e e m e n t the provisions of t h i s

Agreemen t shall prevail .

G. Subject to t h e last preceding clause, t he provisions of the said F inancia l Agreement and the unde r t ak ings and obl igat ions of t he Commonweal th and of the S ta tes there in conta ined shall apply to t he public deb ts after conversion in pursuance of clause 3 of this Agree­ men t in the same manne r as they applied before such conversion.

Signed by the P r ime Minis ter of
the Common wealth of Aus­
t ra l ia for and on behalf of t he

Signed by the Premier of the State of New .South Wales for and

on behalf of the said State in	JOHN T. LANG,
the presence of—

C. R. CHAPMAN.

Signed by the Premier of the State of Victoria for and on behalf

of the said State in the pre-	E.	J . HOGAN.
sence of—

C . C . GALE.

Signed by the Premier of the State of Queensland for and on

behalf of the said State in the	A. E. MOORE.
presence of—

G. W. WATSON.

Signed by the Premier of the State of South Australia for and on

behalf of the said State in the	LIONEL L. HILL,
presence of—

M. A. E. PEARCE..

Signed by the Premier of the State ~

of Western Austral ia for and

on behalf of the said State in	J A M E S MITCHELL,
the presence of—	i

L. E. SHAPCOTT, J . P . J

Signed by the Premier of the State of Tasmania for and on behalf

of the said State in the pie-	J . C. McPHEE.
sence of—

E . PAISKES.

GOVERNMENT