Loan (Defence) Act 1971 (Cth)

LOAN (DEFENCE) ACT 1971 [Note: This Act is "repealed" by Act No. 61 of 1981]

(#DATE 19:12:1973)

Compilation Information 

- Reprinted as at 19 December 1973

LOAN (DEFENCE) ACT 1971-1973 - TABLE OF PROVISIONS 
TABLE



                         LOAN (DEFENCE)  ACT  1971-1973



                             TABLE  OF  PROVISIONS

Section

  1.        Short title

  2.        Commencement

  3.        Interpretation

  4.        Approval of agreement and borrowing

  5.        Approval of notes

  6.        Expenditure of loan moneys

  7.        Payment of moneys out of Consolidated Revenue Fund

  8.        Exemption from taxation

  9.        National Debt Sinking Fund Act not to apply



                                 THE  SCHEDULE



                                   Agreement



                               -----------------

LOAN (DEFENCE) ACT 1971-1973 - SECT. 1. 
Short title. 
SECT

United States of America and to authorize the expending of those Moneys for
Defence Purposes, and for purposes connected therewith.

Short title amended; No. 32, 1918, s. 2.

  1. This Act may be cited as the Loan (Defence) Act 1971-1973.*

LOAN (DEFENCE) ACT 1971-1973 - SECT. 2. 
Commencement. 
SECT

  2. This Act shall come into operation on the day on which it receives the
Royal Assent.*

LOAN (DEFENCE) ACT 1971-1973 - SECT. 3. 
Interpretation. 
SECT

  3. (1) In this Act, ''the Loan Agreement'' means an agreement, in accordance
with the form in the Schedule to this Act, between the Commonwealth and the
Export-Import Bank of the United States.

  (2) For the purposes of this Act-



  (a)  the promissory notes delivered by the Commonwealth under the Loan
Agreement shall be deemed to form part of the Loan Agreement; and



  (b)  a payment in accordance with the Loan Agreement by the Export-Import
Bank of the United States of moneys in discharge of a liability of the
Commonwealth shall be taken to be the loan of an amount equal to those moneys
by the Export-Import Bank of the United States to the Commonwealth.

LOAN (DEFENCE) ACT 1971-1973 - SECT. 4. 
Approval of agreement and borrowing. 
SECT

  4. The execution on behalf of the Commonwealth of the Loan Agreement, and
the borrowing by the Commonwealth in accordance with that agreement of moneys
in the currency of the United States of America not exceeding Ninety million
dollars, are approved.

LOAN (DEFENCE) ACT 1971-1973 - SECT. 5. 
Approval of notes. 
SECT

  5. The execution on behalf of the Commonwealth, and the delivery, of
promissory notes in accordance with the Loan Agreement, are approved.

LOAN (DEFENCE) ACT 1971-1973 - SECT. 6. 
Expenditure of loan moneys. 
SECT

  6. The proceeds of borrowing under the Loan Agreement may be issued and
applied for defence purposes.

LOAN (DEFENCE) ACT 1971-1973 - SECT. 7. 
Payment of moneys out of Consolidated Revenue Fund. 
SECT

  7. The expenses of borrowing and all moneys payable by the Commonwealth
under the Loan Agreement, including moneys payable in respect of commitment
fees, as interest or by way of repayment of moneys borrowed, shall be paid out
of the Consolidated Revenue Fund, which is appropriated to the extent
necessary for the purposes of this section.

LOAN (DEFENCE) ACT 1971-1973 - SECT. 8. 
Exemption from taxation. 
SECT

Sub-section (1) amended by No. 216, 1973, s. 3.

  8. (1) Notwithstanding anything contained in any law of the Commonwealth or
of a State or Territory, whether passed or made before or after the
commencement of this Act-



  (a)  the execution, issue and delivery of the Loan Agreement or of any
promissory note provided for by that agreement; and



  (b)  the payment of moneys referred to in paragraph A of Article VIII of
that agreement,

are exempt from all taxes, duties, fees, restrictions and other charges as
agreed in that Article.

  (2) Nothing in this section excludes or limits the application of section 6B
of the Loans Securities Act 1919-1968.

LOAN (DEFENCE) ACT 1971-1973 - SECT. 9. 
National Debt Sinking Fund Act not to apply. 
SECT

  9. The National Debt Sinking Fund Act 1966-1967 does not apply in relation
to moneys borrowed under the Loan Agreement.



                                  -----------

LOAN (DEFENCE) ACT 1971-1973 - THE SCHEDULE 
SCH



                                 THE  SCHEDULE

                                                                       Section
3 



  THIS AGREEMENT, made and entered into the         day of        , 1971, by
and between the Commonwealth of Australia (hereinafter called ''Borrower'')
and the Export-Import Bank of the United States (hereinafter called
''Eximbank''), an agency of the United States of America;



                                  WITNESSETH:



  WHEREAS, the Borrower has entered or will enter into arrangements
(hereinafter called ''Purchase Arrangements'') with the Department of Defense,
United States of America (hereinafter called ''DOD''), and with various United
States suppliers, for the purchase of certain defense articles, equipment and
services, (said purchases being hereinafter collectively called ''Purchase
Program''); and 



  WHEREAS, the Borrower has requested Eximbank to establish a line of credit
in its favor to assist the Borrower in financing payments required to be made
by the Borrower to the DOD and to the United States suppliers under Purchase
Arrangements for or towards the acquisition in the United States of that
portion of the Purchase Program which consists of (i) equipment, components,
and articles produced or manufactured in the United States to the extent that
at least ninety-five percent (95%) of the value thereof has been added by
labor or material exclusively of United States origin; and (ii) services of
United States origin; and



  WHEREAS, the establishment of the line of credit requested will facilitate
exports and imports and the exchange of commodities between the United States
and Australia;



  NOW, THEREFORE, the parties hereto agree as follows:



                                   ARTICLE I



                                 Line of Credit



  Eximbank hereby establishes in favor of the Borrower a line of credit
(hereinafter called ''Credit'') in the principal amount of Ninety Million
Dollars ($90,000,000), United States currency, against which Eximbank will
make disbursements from time to time, subject to the terms and conditions
hereinafter set forth, to assist the Borrower in financing payments required
to be made by the Borrower from July 1, 1971, through December 31, 1975,
inclusive, under Purchase Arrangements satisfactory to Eximbank for or towards
the acquisition in the United States of that portion of the Purchase Program
which consists of Eligible Items. Only those items that are purchased during
Fiscal Year 1972 and which are approved by the DOD shall be eligible for
financing hereunder. In no event shall items leased by the Borrower be
eligible for financing hereunder. Items eligible for financing hereunder are
heretofore and hereinafter called ''Eligible Items''.



                                   ARTICLE II



                                   Repayment



  The Borrower covenants and agrees to repay the principal amount of all
disbursements made under the Credit, and to pay interest thereon, as
hereinafter set forth:

  (1) Principal and Interest. The Borrower shall repay each disbursement under
the Credit in fourteen (14) approximately equal installments, the first of
which shall be due and payable on the 15th day of November following the close
of the fiscal year of Eximbank in which such disbursement was made with the
remaining thirteen installments due and payable successively semiannually
thereafter on May 15 and November 15 of each year. In addition to the
foregoing amounts, the Borrower shall pay interest semiannually on May 15 and
November 15 of each year at the rate of six and one-half (6-1/2%) per annum on
the principal amount of the Credit disbursed and outstanding from time to
time, said interest to accrue from the dates of the respective disbursements
under the Credit and to be computed on the basis of the actual number of days
using a 365-day factor. Interest shall not be charged for the date on which
any principal payment is made on the amount of such principal payments. All
payments of principal and interest hereunder shall be made in United States
currency at the principal office of The Chase Manhattan Bank in the City of
New York, State of New York, United States of America in Federal Reserve Bank
of New York funds.

  (2) Promissory Notes. Further to evidence the obligation of the Borrower to
pay the amounts specified in sub-paragraph (1) of this Article, the Borrower
shall, with each request for disbursement, issue and deliver to Eximbank a
negotiable promissory note in a principal amount equal to the amount of the
requested disbursement in the form of Annex ''A'' to this Agreement; each such
note to be (i) dated as of date of issue, (ii) payable in United States
currency, (iii) printed or lithographed on one side of one sheet of bank note
or safety paper, and (iv) in form and substance satisfactory to Eximbank. In
the event that the actual amount of a disbursement made pursuant to any
request shall be less than the amount of the requested disbursement provided
for in any promissory note, Eximbank will, immediately after the making of the
disbursement, exchange the promissory note for a new promissory note in the
principal amount of the actual disbursement. (The term ''Notes'' shall mean
the promissory note or notes evidencing the principal amount of the
disbursements under the Credit outstanding at any one time.)

  (3) Prepayments. The Borrower shall have the right, upon payment of all
accrued charges for interest, to repay at any time in advance of maturity,
without premium or penalty, all or part of the principal amount of the Credit
at the time outstanding, and of the Notes; provided, that any such prepayments
shall be applied to the outstanding installments of principal of the Credit,
and of the Notes, in the inverse order of their maturity.

  (4) Commitment Fee. Commencing on November 15, 1971, the Borrower shall on
May 15 and November 15 of each year pay to the order of Eximbank at the
principal office of The Chase Manhattan Bank in the City of New York, State of
New York, United States of America in Federal Reserve Bank of New York funds a
commitment fee computed at the rate of one-half of one percent (1/2 of 1%) per
annum on the undisbursed, uncancelled or unexpired balance of the Credit
outstanding, using a 365-day factor; said commitment fee to accrue from August
8, 1971, through December 31, 1975.

  (5) Application of Payments. All payments made by the Borrower on or in
respect of any amount due and payable under this Agreement and the Notes,
shall be applied first to the commitment fee then due and payable, next to
accrued interest then due and payable, next to the repayment of principal then
due and payable, next to the payment of any other indebtedness incurred by the
Borrower under this Agreement and the Notes and not listed in this
sub-paragraph (5), and last to the prepayment of the Credit and the Notes in
accordance with subparagraph (3) of this Article II.



                                  ARTICLE  III



                            Disbursement Procedures



  A. Disbursements to DOD. When all conditions precedent to the first
utilization of the Credit have been fulfilled, Eximbank will, upon receipt of
the following in form and substance satisfactory to it, make disbursements
from time to time on behalf of the Borrower to the account of the DOD for the
purpose of financing payments required to be made by the Borrower (i) under
Purchase Arrangements satisfactory to Eximbank and (ii) in conformity with the
purposes for which the Credit has been established:

  (1) Request. A request signed by a duly authorized representative of the
Borrower for a disbursement in the amount specified in the statement required
by subparagraph (2) below;

  (2) DOD Statement. A statement of the DOD (a) identifying the Purchase
Arrangements under which disbursement is being requested by the Borrower; (b)
verifying that the amount of the requested disbursement is due under said
Purchase Arrangements and specifying the due date thereof; and (c) certifying
that the amount of the requested disbursement will be applied for or towards
the acquisition in the United States of Eligible Items;



  B. Disbursements to United States Suppliers. When all conditions precedent
to the first utilization of the Credit have been fulfilled, Eximbank will,
upon receipt of the following in form and substance satisfactory to it, make
disbursements from time to time on behalf of the Borrower to the account of
United States suppliers at commercial banks in the United States designated by
such suppliers and acceptable to Eximbank for the purpose of financing
payments required to be made by the Borrower (i) under Purchase Arrangements
satisfactory to Eximbank and (ii) in conformity with the purposes for which
the Credit has been established:

  (1) Request. A request signed by a duly authorized representative of the
Borrower for a disbursement in the amount specified in the statement required
by subparagraph (2) below;

  (2) Supplier Statement. A statement of the United States supplier or
suppliers (a) identifying the Purchase Arrangements under which disbursement
is being requested by the Borrower; (b) verifying that the amount of the
requested disbursement is due under said Purchase Arrangements and specifying
the due date thereof; and (c) certifying that the amount of the requested
disbursement will be applied for or towards the acquisition in the United
States of Eligible Items;

  (3) Additional Information. Such additional documents and information as
Eximbank may from time to time reasonably request.



  C. Disbursements to Borrower. When all conditions precedent to the first
utilization of the Credit have been fulfilled, Eximbank will, upon receipt of
the following in form and substance satisfactory to it, make disbursements
from time to time to the account of the Borrower at a commercial bank in the
United States designated by the Borrower and acceptable to Eximbank to
reimburse the Borrower for payments made by the Borrower to the DOD or the
United States supplier or suppliers (i) under Purchase Arrangements
satisfactory to Eximbank and (ii) in conformity with the purposes for which
the Credit has been established:

  (1) Request. A request signed by a duly authorized representative of the
Borrower for a disbursement in the amount specified in the statement required
by subparagraph (2) below;

  (2) Statement. A statement or statements of the DOD or the United States
supplier or suppliers, as the case may be, (a) identifying the Purchase
Arrangements under which disbursement is being requested by the Borrower; (b)
verifying that the amount of the requested disbursement was paid under said
Purchase Arrangements; and (c) certifying that an amount equal to the amount
of the requested disbursement has been or will be applied for or towards the
acquisition in the United States of Eligible Items;

  (3) Additional Information. Such additional documents and information as
Eximbank may from time to time reasonably request.



  D. Notice. The Borrower shall give Eximbank at least three (3) business days
prior notice of the date and aggregate amount of the disbursement to be made
hereunder. Except for the last disbursement request, each disbursement request
shall be in the amount of at least Two Hundred Fifty Thousand Dollars
($250,000), or, when made in a lesser amount, only once a calendar month.



  E. General. Under the foregoing procedures or any other disbursement
procedures to which the Borrower and Eximbank may hereafter agree in writing,
the following shall be submitted in such manner as Eximbank shall specify:

  (1) Shipping. Evidence that the Eligible Items to be financed have been or
will be shipped in accordance with the requirements of paragraph C of Article
VIII hereof; and

  (2) Borrower's Certificate. The Borrower's certificate as to the purchase
price of the Eligible Items to be financed. The total of all amounts disbursed
under this Article shall at no time exceed the amount of the Credit as set
forth in Article I hereof.



                                   ARTICLE IV



                   Representations, Warranties and Covenants



  A. Representations and Warranties. The Borrower represents and warrants as
follows:

  (1) Authority. The Borrower has full power, authority, and legal right to
incur the indebtedness and other obligations provided for in this Agreement
and the Notes, and to execute and deliver this Agreement and the Notes, and
this Agreement constitutes, and the Notes when issued hereunder will
constitute, valid and binding obligations of the Borrower in accordance with
the respective terms hereof and thereof.

  (2) Legal Action. The Borrower has taken all action required under the laws
and regulations of the Borrower, or of any political subdivision, department
or agency thereof, to authorize the execution and delivery of this Agreement
and the Notes.

  (3) Full Faith and Credit. All covenants of the Borrower contained in this
Agreement constitute, and the Notes when issued hereunder will constitute,
unconditional direct obligations of the Borrower, for the payment and
performance of which the full faith and credit of the Borrower is pledged.



  B. General Covenants-Borrower. Commencing with the date of this Agreement
and continuing until all indebtedness of the Borrower under this Agreement and
the Notes shall have been paid in full, the Borrower convenants and agrees
that except to the extent that Eximbank may otherwise consent in writing:

  (1) Information and Documents. The Borrower shall furnish or cause to be
furnished to Eximbank all reasonable information as it shall request
concerning the expenditure of the disbursements hereunder, and the Eligible
Items financed under this Agreement. The Borrower shall also cause to be
furnished to Eximbank such opinions of counsel, evidence of authority,
authenticated specimen signatures and other relevant documents and information
as it may from time to time reasonably request. In addition, the Borrower
shall furnish certified copies of invoices or other supporting documents
necessary to establish the use of the funds disbursed to the Borrower under
this Agreement, and, accordingly, unless previously submitted to Eximbank, the
Borrower shall retain such documents until all indebtedness of the Borrower
under this Agreement and the Notes shall have been paid in full.

  (2) Undertaking of Borrower. The Borrower shall pursue any claims which it
may now or hereafter have against the United States suppliers or any other
person or entity in connection with the purchase of the Eligible Items, or in
connection with any other transaction for any reason whatsoever, independently
of the indebtedness of the Borrower under this Agreement and the Notes; and
the Borrower hereby agrees to forego the utilization of such claims as the
basis of any counterclaim against, or deduction or setoff from, the payment of
the indebtedness of the Borrower under this Agreement and the Notes or any
other obligation established hereunder.

  (3) Duty to Perform. The Borrower shall perform, on request of Eximbank,
such acts as may be necessary to carry out the intent of this Agreement.

  (4) Use and Control of Eligible Items. So long as the indebtedness incurred
under this Agreement and the Notes remains outstanding and unpaid, the
Eligible Items financed under this Credit are for use solely by the agencies
or departments of the Borrower and said Eligible Items shall remain under the
control of the agencies or departments of the Borrower and shall not be
loaned, leased or transferred to any other nation.



                                   ARTICLE  V



                               Events of Default



  In case one or more of the following events (hereinafter called ''Event of
Default'') shall have occurred and be continuing, that is to say:

  (1) A default shall have occurred in the payment of any amounts required
under this Agreement, the Notes, or any other agreement between Eximbank and
the Borrower; or

  (2) A default shall have occurred in the performance of any other covenant
on the part of the Borrower under this Agreement, the Notes, or any other
agreement between Eximbank and the Borrower, and such default remains
unremedied for a period of thirty (30) days after written notice thereof shall
have been given to the Borrower by Eximbank; or

  (3) Any representation or warranty made by the Borrower under this
Agreement, the Notes, or any other agreement between Eximbank and the Borrower
proves to be incorrect in any material respect and has not been corrected
within thirty (30) days after written notice thereof shall have been given to
the Borrower by Eximbank; or

  (4) The Borrower engages in armed conflict, declared or otherwise, with the
armed forces of the United States or the Borrower furnishes by direct
governmental action (not including chartering, licensing, or sales by
non-wholly-owned business entities) goods, supplies, military assistance or
advisors to a nation engaged in armed conflict, declared or otherwise, with
armed forces of the United States;

then and in each and every such case, Eximbank may at its option, upon written
notice to the Borrower, make immediately due and payable the entire principal
amount of the Credit at the time outstanding, or any Note or Notes evidencing
such amount, together in each case with accrued interest thereon to the date
of payment.



                                  ARTICLE  VI



                   Availability, Cancellation and Suspension



  A. Availability. Except to the extent that a duly authorized officer of
Eximbank may otherwise consent in writing, Eximbank shall not be obligated to
make disbursements under the Credit subsequent to the close of business on
December 31, 1975, and any part of the Credit which shall not have been
disbursed on or before said date may be cancelled by Eximbank without the
requirement of notice to the Borrower.



  B. Cancellation. The Borrower may by written notice to Eximbank cancel all
or any part of the Credit which shall not have been disbursed.



  C. Suspension. If an Event of Default shall occur and be continuing, then
and in each and every such case, Eximbank may, upon written notice to the
Borrower, suspend all further disbursements under the Credit; thereafter,
Eximbank shall not be obligated to make further disbursements until it (i)
shall have received evidence that the cause or causes of the suspension have
been eliminated or corrected in a manner satisfactory to Eximbank, and (ii)
shall have notified the Borrower in writing that the suspension has been
removed.



  D. Continuation of Rights and Obligations. Notwithstanding any cancellation
or suspension pursuant to this Article, all the provisions of this Agreement
and the Notes, and the rights and obligations of either party with respect to
disbursements made prior to such cancellation or suspension, shall continue in
full force and effect.



                                  ARTICLE  VII



                              Conditions Precedent



  A. Prior to and as a condition precedent to the first utilization of the
Credit by the Borrower, Eximbank shall be furnished with the following in form
and substance satisfactory to it:

  (1) Legal Opinion. An opinion or opinions of the Secretary or the Acting
Secretary to the Attorney-General's Department of the Commonwealth of
Australia, verifying the representations, warranties, and covenants of the
Borrower set forth in subparagraphs (1) through (3) of paragraph A of Article
IV hereof; provided that such opinion or opinions shall refer to all pertinent
laws, ordinances, regulations, decrees, resolutions and other relevant
documents.

  (2) Evidence of Authority. Evidence of the authority of the person or
persons (i) who have signed this Agreement on behalf of the Borrower; (ii) who
will execute the Notes on behalf of the Borrower; and (iii) who will sign the
requests for disbursement and other documents required or permitted by this
Agreement and who will otherwise act as the representative or representatives
of the Borrower in connection with the operation of the Credit.

  (3) Specimen Signatures. The authenticated specimen signature of each person
named pursuant to subparagraph (2) above.



  B. Thereafter, prior to and as a condition precedent to disbursements by
Eximbank with respect to any given Purchase Arrangement, the Borrower shall
submit or cause to be submitted in form and substance satisfactory to
Eximbank: 

  (1) Purchase Arrangement. A certified or conformed copy of the Purchase
Arrangement or such other written evidence of the arrangement as may be
acceptable to Eximbank.

  (2) Promissory Note. A promissory note as described in Article II,
subparagraph (2) herein for the amount of the requested disbursement under the
Purchase Arrangement.



  C. In addition, Eximbank shall be furnished with such additional legal
opinions, evidence of authority, authenticated specimen signatures, documents,
and other information as Eximbank may from time to time reasonably request.



                                 ARTICLE  VIII



                            Miscellaneous Provisions



  A. Taxes. The Borrower covenants and agrees that the execution, issuance and
delivery of this Agreement and the Notes, and except to the extent that the
right to receive payment of the principal amount of or interest on any
outstanding disbursements under the Credit or any Notes is or comes to be
beneficially owned by any person residing in or ordinarily a resident of
Australia or the Territory of Papua or the Territory of New Guinea, the
payment of principal and interest under this Agreement and the Notes shall be
exempt from all present and future taxes, duties, fees, restrictions, and
other charges of whatsoever nature now or hereafter levied or imposed (i)
under the laws of the Borrower or laws in effect in its territories or (ii) by
the Borrower or by any political subdivision, taxing authority, department, or
agency thereof.



  B. Expenses. All statements, reports, certificates, opinions and other
documents or information furnished to Eximbank under this Agreement shall be
supplied by the Borrower without cost to Eximbank. Further, the Borrower
hereby agrees to reimburse Eximbank on demand for all out-of-pocket costs and
expenses, including legal fees, incurred by Eximbank in connection with the
enforcement, protection or preservation of any right or claim of Eximbank in
connection with this Agreement or the Notes.



  C. Marine Transportation. Any of the Eligible Items, the purchase of which
is to be financed in whole or in part under this Agreement and which shall be
exported by ocean vessel to Australia shall be transported from the United
States in vessels of United States registry, as required by Public Resolution
No. 17 of the 73rd Congress of the United States except to the extent that a
waiver of such requirement is obtained from the United States Maritime
Administration.



  D. Sale of Notes. Eximbank agrees not to negotiate or transfer the Credit or
the Notes nor to dispose of any participations therein without the prior
written consent of the Borrower; provided, however, that the foregoing shall
not apply to the sale of (i) certificates of beneficial interest in the Credit
or the Notes; and (ii) participations in the Credit or the Notes if such
participations constitute interests in a pool of Eximbank loans, which pool
includes the Credit or the Notes, and such participations are guaranteed by
Eximbank.



  E. Exchange of Notes. Upon the request of Eximbank made at any time or from
time to time the Borrower shall issue and deliver to Eximbank, in exchange for
any Note or Notes theretofore issued to Eximbank hereunder, its new Notes in
such denominations as Eximbank may specify, dated the date to which interest
shall have been paid on the Notes surrendered, and in an aggregate principal
amount equal to the aggregate of disbursements against, less the aggregate of
any repayments of principal made upon, the Notes surrendered. The new Notes
issued pursuant hereto shall conform to the requirements of subparagraph (2)
of Article II hereof and shall be substantially in the form of Annex ''A'' to
this Agreement, except for such modifications as may be necessary or
appropriate to give effect to any of the provisions of this paragraph E. The
new Notes shall be dated so that no gain or loss of interest or acceleration
or delay of interest payments will result.



  F. Waiver. No failure or delay on the part of Eximbank to exercise any
right, power, or privilege under this Agreement or the Notes shall operate as
a waiver thereof, nor shall any single or partial exercise of any right,
power, or privilege under this Agreement or the Notes preclude any other or
further exercise thereof or the exercise of any other right, power, or
privilege.



  G. Notices. All notices, demands and deliveries to be given or made to the
Borrower or Eximbank shall be given or made, as the case may be, at the
Australian Embassy, Washington, District of Columbia, United States of
America, or at the principal office of Eximbank, Washington, District of
Columbia, United States of America, or at such other place as may be
designated in writing by the respective parties hereto.



  H. Future Amendments to Article I. Upon request of the Borrower, the
provisions of Article I hereof may be amended provided that Eximbank gives its
prior written consent to the amendment.



                                                                     ANNEX
''A'' 



                                PROMISSORY  NOTE

U.S. $..............................  ..............................,
19........ 

  FOR VALUE RECEIVED, THE COMMONWEALTH OF AUSTRALIA (hereinafter called
''Borrower''), by this Promissory Note (hereinafter called ''Note''), hereby
unconditionally promises to pay to the Export-Import Bank of the United
States, or order, the principal sum of
.................................................
.............................. Dollars (U.S. $..............................),
United States currency, in installments as hereinafter provided, and to pay
interest in like currency on May 15 and November 15 of each year (hereinafter
called ''Interest Payment Dates'') at the rate of
.............................. (....................%) per annum on the unpaid
principal balance of this Note from time to time outstanding.



  The principal of this Note shall be payable in
.............................. (....................) installments, the first
of which shall be in the sum of . Dollars (U.S.
$..............................), United States currency, and shall be due and
payable on .............................., 19........, and the remaining
.............................. (....................) installments shall each
be in the sum of .................................................... Dollars
(U.S. $..............................), United States currency, and shall be
due and payable successively semiannually thereafter on the Interest Payment
Dates.



  Payment of the principal of and interest on this Note shall be made at the
principal office of The Chase Manhattan Bank, in the City of New York, State
of New York, United States of America.



  The principal of this Note, and the interest thereon, shall be paid without
deduction for or on account of, and shall be exempt from, all present and
future taxes, duties, fees, restrictions or other charges of whatsoever nature
now or any time hereafter levied or imposed (i) under the laws of the Borrower
or laws in effect in its territories or (ii) by the Borrower or by any
political subdivision, taxing authority, department or agency thereof, except
to the extent that this Note is or comes to be beneficially owned by any
person residing in or ordinarily a resident of Australia or the Territory of
Papua or the Territory of New Guinea.



  Upon the default in the prompt and full payment of any installment of
principal or interest on this Note, the entire principal of this Note and
interest thereon to the date of payment shall immediately become due and
payable at the option and upon the demand of the holder hereof.



  The Borrower shall have the right, upon payment of all accrued charges for
interest, to repay at any time in advance of maturity, without premium or
penalty, all or part of the principal amount of this Note; any such prepayment
to be applied to the installments of principal in the inverse order of their
maturity.



  Subject to the foregoing terms of this Note, the Borrower hereby waives
diligence, protest, presentment, demand and notice of any kind whatsoever.



  This Note and the covenants herein contained constitute unconditional direct
obligations of the Borrower, for the payment and performance of which the full
faith and credit of the Borrower is pledged.



  The non-exercise by the holder hereof of any of its rights hereunder in any
particular instance shall not constitute a waiver thereof in that or any
subsequent instance.



                          COMMONWEALTH  OF  AUSTRALIA

By............................................................................
.. 

Title.........................................................................
.. 

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LOAN (DEFENCE) ACT 1971-1973 - NOTE 



                                      NOTE

1.  The Loan (Defence) Act 1971-1973 comprises the Loan (Defence) Act 1971 as
amended by the other Act specified in the following table:

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                                Number                       Date of

    Act                         and year        Date of

                                                Assent       commencement

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    Loan (Defence) Act 1971     No. 103, 1971   26 Nov 1971  26 Nov 1971

    Statute Law Revision Act

    1973                        No. 216, 1973   19 Dec 1973  31 Dec 1973

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