LOANS
SINKING FUND.
No. 6 of 1918.
An
Act to provide a Sinking Fund for Loans and for other purposes.
[Assented
to 28th May, 1918.]
BE it enacted by the King’s Most Excellent
Majesty, the Senate, and the House of Representatives of the Commonwealth of
Australia, as follows:—
Short
title and date of commencement.
1. This Act may be cited as the Loans
Sinking Fund Act 1918, and shall be deemed to have come into operation on
the first day of July One thousand nine hundred and sixteen.
Amendment
of Commonwealth Inscribed Stock Act 1911–1915.
2. The Commonwealth Inscribed
Stock Act 1911–1915 is amended—
(a) by
omitting from section two the words “Part IV.—The Stock Redemption Fund.”; and
(b) by
repealing Part IV.
Loans
Sinking Fund.
3. The Treasurer shall, in each financial year commencing after the
thirtieth day of June One thousand nine hundred and sixteen, pay out of the
Consolidated Revenue Fund, which is hereby appropriated for the purpose, into
the Trust Fund, under the head of the Loans Sinking Fund, an amount of not less
than Ten shillings per centum per annum on the public debt of the Commonwealth
at the thirty-first day of December in that year in respect of—
(a) all
moneys raised under the Commonwealth
Inscribed Stock Act 1911–1915; and
(b) all
moneys borrowed from the Government of the United Kingdom.
Payment
of unexpended balances of Loan Fund into Sinking Fund.
4. The Treasurer shall pay into the Loans Sinking Fund all unexpended
balances standing to the credit of the Loan Fund which are no longer required.
Application
of loans Sinking Fund.
5.—(1.) The Treasurer may apply the Loans Sinking
Fund in—
(a) re-purchasing,
purchasing or redeeming any securities issued under the Commonwealth Inscribed Stock Act 1911–1915;
(b)
repaying any moneys borrowed from the Government of the United Kingdom; and
(c) paying any expenses incurred in carrying
out the provisions of this section,
and for no other purpose whatever.
(2.) No re-purchased, purchased or redeemed
securities shall be re-issued.
Investment
of Loans Sinking Fund.
6.—(1.) The Treasurer may invest any moneys standing
at the credit of the Loans Sinking Fund in the purchase of any securities of,
or guaranteed by, the Government of the United Kingdom, or the Government of
the Commonwealth, or the Government of any State, and may at any time sell such
securities.
(2.) All sums received as interest in respect of
such investments, or from the sale of such securities, shall be paid into the
Loans Sinking Fund.
Closing
of Stock Redemption Fund.
7.—(1) All moneys standing at the credit of the
Stock Redemption Fund shall be transferred to the credit of the Loans Sinking
Fund, and all investments of the Stock Redemption Fund shall be deemed to be
investments of the Loans Sinking Fund.
(2.) All sums received as interest in respect of
such investments, or from the sale of such securities, shall be paid into the
Loans Sinking Fund.