Local Government (Amendment) Act 1935 (NSW)

LOCAL GOVERNMENT

(AMENDMENT) ACT.

with, [Assented to, 6th March, 1935.1 " B E

Act No. 8, 1935.

An Act to declare the priorities of securities for renewal loans raised by councils; to deal with the raising of certain loans by councils and to confer powers in respect of such loans; to amend the Local Government Act, 1919, and certain other Acts in certain respects; and for purposes connected there-

BE it enacted b y the King 's Most Excellent Majesty, lative Council and Legislative Assembly of New South b y and with t he advice and consent of the Legis­	Wales in Par l iament assembled, and by the au thor i ty of
the same, as follows :—
1. (1) This Act m a y be cited as the " Local Govern­ ment (Amendment ) Act, 1935.' '
(2) The Local Government Act, 1919, as amended by subsequent Acts , is here inaf ter refer red to as the
Pr inc ipa l Act.

2. (1) Section th i r ty of the Sydney Corpora t ion

(Amendment) Act, 1934, is hereby repealed.

(2) Subsection two of section one hundred and eighty-two of the Pr inc ipa l Act is amended by omit t ing the words " but a loan ra ised for the purpose of renew­ ing a special, o rd inary , or renewal loan shall rank in p r io r i ty in the same order as the loan thereby r e n e w e d . "

3. Subsection two of section one hundred and eighty- eight of the Pr inc ipa l Act is amended by inser t ing there in a t the end the following p rov i so :—

Prov ided tha t a debenture , mortgage-deed or bond given by a council for securing the repayment (with or without in te res t ) of a renewal loan raised for the purpose of repay ing or renewing (in whole or p a r t ) a special, o rd ina ry or renewal loan (with or wi thout the in teres t the reon) , which is secured by a deben­ tu re , mortgage-deed or bond, shall have the same p r io r i t y as such last-mentioned debenture , mor tgage- deed or bond, whether the renewal loan is made by t h e holder of such debenture , mortgage-deed or bond

o r not.

4. Sections two and three of th is Act shall be deemed

to have commenced on the ten th day of Augus t , one

thousand nine hund red and th i r ty-four .

5. Subsection one of section one hundred and seventy- six of the P r inc ipa l Act is amended by inser t ing there in a t the end the following w o r d s : " no twi ths tand ing tha t the sum ra ised under the first-mentioned loan was to have been or is to be appl ied by the lender towards the dis­ charge of the council 's indebtedness to the lender unde r the loan to be repa id or renewed and was not or is no t actually paid to the counci l ."

6. Section one hundred and seventy-six of the P r in ­ cipal Act is amended by inser t ing there in af ter sub­ section one the following new subsect ion:—

(1A) A renewal loan may have been or may be ra ised notwi ths tanding tha t the per iod for repay­ ment of the loan renewed or repa id or to be renewed or repa id had or has not ar r ived.

7.     The Pr inc ipa l Act is fu r the r amended by inser t ing

there in af ter section 192A the following new sect ions:—

192B. A s t a tu to ry body or au thor i ty represen t ing

the Crown shall not be deemed gui l ty of any breach of t r u s t by reason only of the i r or his agree ing with a council to a reduct ion of the ra te of in teres t pay­ able unde r any debenture , mortgage-deed or bond

held by such s t a tu to ry body or au thor i ty .

192c. (1) A t rus tee shall not have been or be gui l ty of any breach of t r u s t by reason of having entered into or en ter ing into a renewal loan a t a less r a t e of in te res t t han t ha t payable in respect of the loan renewed or repa id or to be renewed or repa id and having a per iod for repayment extending beyond the da te a t which the per iod for r epaymen t of the loan renewed or repa id or to be renewed or r epa id would have expired.

(2) I n this section " t rus tee " includes p e r ­ sonal representa t ive of a deceased person, committee of the es ta te of an insane person, manage r of the es ta te of an incapable person, the Mas te r in Lunacy , the Mas te r in Equi ty , and any other person act ing in any fiduciary capacity and any s t a tu to ry body or

au thor i ty represen t ing the Crown.

S.	The Pr inc ipa l Act is fur ther amended as follows:—
(a) by omitting subsection eleven of section one

hundred and e igh ty ;

(b) by inserting in subsection one of section one hundred and eighty-three a t the end thereof the words " I n respect of renewal loans secured or to be secured by debenture , mortgage-deed o r bond this subsection shall have applied and shall: apply only where the sum borrowed was or is to- be actually pa id to the counci l ."

S W I N E