Papua New Guinea Loans Guarantee Act 1973 (Cth)

Papua New Guinea Loans Guarantee

Act 1973

No. 124 of 1973

AN ACT

To provide for the Giving of Guarantees by Australia with respect to Loans to be raised Overseas by Papua New Guinea, and for purposes connected therewith.

 

[Assented to 30 October 1973]

BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—

Short title.

1. This Act may be cited as the Papua New Guinea Loans Guarantee Act 1973.

Commencement.

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

Application of Act.

3.This Act extends to Papua New Guinea.

Interpretation.

4. (1) In this Act, unless the contrary intention appears—

“guarantee” means a guarantee under sub-section 5(1),and includes any agreement entered into for the purposes of a guarantee;

“Papua New Guinea” means the Administration or Government of Papua New Guinea.

 

(2) For the purpose of this Act, where an amount in foreign currency is borrowed under an agreement, the equivalent of that amount in Australia currency is the amount determined by the Reserve Bank of Australia, having regard to the exchange rates of that bank for Australia Government transactions, to be so equivalent at the time when the agreement is entered into.

Approval of guarantees.

5. (1) Subject of this section, if Papua New Guinea enters into an agreement under which Papua New Guinea is to, or may, borrow, by way of the sale of bonds or otherwise, an amount in a foreign currency, the Treasurer, or a person authorized by him , may, on behalf of Australia, give a guarantee in respect of the payment of all moneys, including interest, payable by Papua New Guinea under the agreement and may, for the purposes of the guarantee, enter into an agreement containing such terms as are approved by the Treasurer and the Minister for External Territories.

(2) A guarantee or guarantee shall not be given under sub-section (1) in relation to the borrowing, under one agreement or two or more agreements, of foreign currency the equivalent of which in Australian currency exceeds Twenty-four million dollars.

(3) For the purposes of sub-section (1), any form of undertaking of liability to pay any moneys shall be deemed to be a guarantee in respect of the payment of those moneys.

(4) A guarantee, when given, constitutes a valid and binding obligation of Australia in accordance with its terms.

(5) The power conferred by sub-section (1) shall not be exercised on or after 1 July 1974.

Appropriation.

6. Any payments by Australia under a guarantee are payable out of the Consolidated Revenue fund, which is appropriated accordingly.

Moneys to be paid free of taxes, &c.

7. A provision of a guarantee or of an agreement to which a guarantee relates providing for—

(a) payments to be made without deduction for, or to be free from, taxes, imposts or duties;

(b) documents to be free from taxes or duties; or

(c) payments to be free from restrictions, regulations, controls or moratoria,

has effect as if enacted by this Act and operates notwithstanding anything in any law of Australia or of a State or Territory, whether passed or made before or after the commencement of this Act.

 

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