National Security (Exchange Control) Regulations (Amendment) (Cth)

STATUTORY RULES.

1941. No.

.

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REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939- 1940.*

I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the National Security Act 1939-1940.

Dated this twenty ninth day of May, 1941.

Governor-General.

By His Excellency’s Command,

for and on behalf of the Minister of State for Defence Co-ordination.

 

Amendments of the National Security (Exchange Control) Regulations.

Definitions.

1. Regulation 6 of the National Security (Exchange Control) Regulations is amended—

(a) by omitting from paragraph (h) of the definition of “foreign securities” the words “, in a country included in the sterling area,”;

(b) by inserting in the definition of “sterling area”, after the word “country”, the words “or area”; and

(c) by adding at the end of the definition of “sterling area” the words “, but does not include any country or area so declared not to be included in the sterling area;”.

Control of purchase, &c. of foreign currency.

2. Regulation 7 of the National Security (Exchange Control) Regulations is amended by inserting after sub-regulation (4.) the following sub-regulation:—

“(4a.) Where any foreign currency is made available to any person by the Bank or by an agent of the Bank for use for any purpose, or subject to any conditions, that person shall not use that foreign currency otherwise than for that purpose, or shall not fail to comply with those conditions, as the case may be.”.

* Notified in the Commonwealth Gazette on , 1941.

  Statutory Rules 1940, No. 282, as amended by Statutory Rules 1941, Nos. 48 and 96.

3078.—15/26.5.1941.—Price 3d.

3. After regulation 10 of the National Security (Exchange Control) Regulations the following regulation is inserted:—

Control of certain transfers, & of property

“10a.—(1.) The sale, loan, transfer, mortgaging or charging of any security or land by, by the order of, or on behalf of, a person resident out of Australia to another person resident out of Australia, or to a person acting on behalf of such a person, shall, unless it is made with the consent in writing of the Treasurer, be prohibited.

“(2.) A person shall not, except with the consent in writing of the Treasurer, whether as agent or attorney of any person resident out of Australia or by the order of or on behalf of any such person, or otherwise, enter into any transaction prohibited by the last preceding sub-regulation.

“(3.) A sale, loan, transfer, mortgage or charge of any security or land prohibited by sub-regulation (1.) of this regulation or entered into in contravention of sub-regulation (2.) of this regulation shall not thereby be invalidated unless the High Court, on the application of the Treasurer, makes an order that the sale, loan or transfer shall be invalidated, but nothing in this sub-regulation shall affect the liability of any person to a penalty in respect of any such contravention.

“(4.) The High Court shall not make any such order if the Court is satisfied that the effect of the order (if made) would be to prejudice rights which have, under a subsequent dealing with the security or land, been acquired bona fide, and without notice of the prohibition or contravention.

“(5.) For the purposes of this regulation—

(a) a body corporate incorporated out of Australia shall be deemed to be a person resident out of Australia;

(b) ‘security’ also includes deposit receipt in respect of a security, unit or sub-unit of a unit trust, coupon or warrant representing dividends or interest, and a life or endowment insurance policy, but does not include bill of exchange or promissory note; and

(c) ‘transfer’ includes transfer by way of loan or security.”.

Blocked accounts.

4. Regulation 12 of the National Security (Exchange Control) Regulations is amended—

(a) by adding at the end of the definition of “blocked account” in sub-regulation (1.) the words “, or an existing account with the Bank or an agent of the Bank declared by the Bank to be a blocked account;”; and

(b) by adding at the end of the definition of “the banker” in that sub-regulation the words “, or which maintains for that person an account declared by the Bank to be a blocked account;”.

Acquisition of foreign currency.

5. Regulation 13. of the National Security (Exchange Control) Regulations is amended by inserting after sub-regulation (3.) the following sub-regulation:—

“(3a.) Payment of the price for any foreign currency sold in pursuance of sub-regulation (1.) of this regulation shall, if the Bank or the agent of the Bank so decides, be subject to the due collection of the proceeds of the foreign currency sold.”.

 

By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.