Local Bodies' Loans Guarantee Act Amendment Act 1979 (Qld)

339 Qilrrltsfzm^ ANNO VICESIMO OCTAVO ELIZABETHAE SECUNDAE REGINAE No. 35 of 1979 An Act to amend the Local Bodies' Loans Guarantee Act 1923 - 1975 in certain particulars and for another purpose [A:S =NTED TO 20TH JUNE, 1979] 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 and citation . (1) This Act may be cited as the Local Bodies' Loans Guarantee Act Amendment Act 1979. (2) In this Act, the Local Bodies' Loans Guarantee Act 1923-1975 is referred to as the Principal Act. (3) The Principal Act as amended by this Act may be cited as the Local Bodies' Loans Guarantee Act 1923-1979. 2. Amendment of long title . The long title of the Principal Act is amended by omitting the words " by Local Bodies from Banks or other Financial Institutions " and substituting the words " or the Payment or Repayment of Moneys raised or the carrying out of terms and conditions of Financial Arrangements made by Local Bodies".

340 Local Bodies' Loans Guarantee Act Amendment Act 1979, No. 35 3. Amendment of s. 3 . Section 3 of the Principal Act is amended by- (a) making the existing provisions subsection (1) by inserting the expression "(1)" before the words " Notwithstanding the provisions "; (b) inserting after the words " is unable to offer " occurring in paragraph (ii) of subsection (1) the words " any or "; (c) omitting the expression "." appearing at the end of subsection (1) and substituting the expression "; "; (d) inserting at the end of subsection (1) the following paragraph:- (iii) Any local body is authorized to raise money or make financial arrangements (other than financial arrangements referred to in paragraph (ii)) the Treasurer may on behalf of the Government guarantee the payment or repayment of moneys raised or the carrying out of the terms and conditions of those arrangements on the part of the local body and, in each case, interest (if any) at the agreed rate."; (e) inserting after subsection (1) the following subsection:- " (2) Nothing contained in section 4A or section 4AA limits in any way the giving of a guarantee by the Treasurer to the lender by way of instrument of guarantee.". 4. Amendment of s. 4 . Section 4 of the Principal Act is amended by omitting the words " to such period of time and ". 5. Amendment of s. 4A. Section 4A of the Principal Act is amended by- (a) inserting after the words " interest at the agreed rate, then " the words ", save in any case where the Treasurer has notified the lender that the giving of the guarantee shall be by way of instrument of guarantee,"; (b) omitting the words " to such period of time and ". 6. New s. 4AA. The Principal Act is amended by inserting after section 4A the following section:- " 4AA. Guarantee of loans where authorization of Governor in Council to borrow not required . Notwithstanding anything to the contrary contained in this Act or any other Act or law or rule or process of law, where a local body empowered under the provisions of any Act to borrow money proposes to do so and the authorization of the Governor in Council is not required in relation thereto, and in any of the cases mentioned in section 3 the Treasurer on behalf of the Government has agreed to guarantee to the lender the amount or any part of the amount to be borrowed with interest at the agreed rate, then, save in any case where the Treasurer has notified the lender that the giving of the guarantee shall be by way of instrument of guarantee, upon the publication in the Gazette of an Order in Council approving the guarantee, the amount when borrowed or such part thereof (as the case may be) with interest thereon at the agreed rate, and whether so borrowed from a bank, financial institution, body corporate or unincorporate or person, shall be and be deemed to be and always to have been guaranteed by the Treasurer on behalf of the Government, limited however to such amount and subject to such other terms, reservations and conditions as the Governor in Council may have prescribed or may prescribe.".

Local Bodies ' Loans Guarantee Act Amendment Act 1979, No. 35 341 7. New s. 4AB. The Principal Act is amended by inserting after section 4AA as inserted by this Act the following section :- "4AB. Lender may be required to 'take security for loan . Without limiting any of the provisions of this Act with respect to the prescribing of terms, reservations and conditions by the Governor in Council, a condition of a guarantee by the Treasurer under this Act may be that the lender shall take such security as is specified in the Order in Council authorizing the borrowing pursuant to section 4A or approving the guarantee pursuant to section 4AA, as the case may be, or, where the guarantee is given by way of instrument of guarantee, as is specified in that instrument, and, where such a condition is contained in the Order in Council in question or in the instrument of guarantee, the lender shall be in breach thereof if he- (a) fails to take the security specified; (b) releases in whole or in part any security so specified without the prior consent in writing of the Treasurer; (c) waives any right or remedy had by him in respect of the loan under any such security therefor taken by him or otherwise howsoever without the prior consent in writing of the Treasurer.". 8. Amendment of s. 5. Section 5 of the Principal Act is amended by- (a) making the existing provisions subsection (1) by inserting the expression "(1)" before the words " In respect of all moneys "; (b) in subsection (1) as aforesaid- (i) omitting the words " six pounds per centum per annum " occurring in paragraph (i) and substituting the words " the long term bond rate "; (ii) inserting at the end of the subsection the following additional paragraph:- " In this subsection, the expression " the long term bond rate " means the rate that is equivalent to the rate of yield to maturity of the loan having a term of not less than 10 years (and, if more than one at the same time, the one with the longer or longest term) last raised by the Commonwealth for public subscription prior to the date at which such rate is to be determined, and where, in respect of a particular period of time, the rate of yield as aforesaid varies from time to time having regard to the loan for the time being under consideration, the long term bond rate shall vary accordingly."; (c) inserting after subsection (1) the following subsections:- " (2) Rights, powers and remedies of the Treasurer under this section shall be exercised for the purposes of this Act by " The Treasurer of Queensland ", being the corporation sole preserved, continued in existence and constituted under the FinancialAdministration and Audit Act1977-1978 for the purposes of Division VIII of Part II thereof. (3) Without derogating from subsection (2), where any securities are to be handed over to the Treasurer pursuant to subsection (1), they shall be handed over to The Treasurer of Queensland aforementioned.".

342 Local Bodies' Loans Guarantee Act Amendment Act 1979, No. 35 9. Validation of certain guarantees . Where prior to the commencement of this Act- (a) any money has been borrowed by a local body within the meaning of the Principal Act or a body declared by any Act to be or to be deemed to be a local body under and within the meaning of the Principal Act; (b) the Governor in Council has authorized or approved of that borrowing; and (c) the Treasurer on behalf of the Government, pursuant to section 3 of the Principal Act or otherwise according to law, has agreed to guarantee to the lender the amount or any part of the amount so borrowed with interest thereon at the agreed rate, the Order in Council published in the Gazette authorizing such borrowing shall be deemed to be and always to have been a guarantee by the Treasurer to the lender of the amount borrowed or the part thereof agreed by the Treasurer to be guaranteed (as the case may be) with interest thereon at the agreed rate subject to the terms, reservations and conditions prescribed by the Governor in Council.