Primary Industry Bank Act 1977 (Cth)

PRIMARY INDUSTRY BANK ACT 1977
- Reprinted as at 31 July 1982 (HISTACT CHAP 643 #DATE 31:07:1982)

*1* The Primary Industry Bank Act 1977 as shown in this reprint comprises Act No. 156, 1977 amended as indicated in the Tables below.

Table of Acts ----------------------------------------------------------------------------- Application, saving Number Date Date of or transitional Act and year of Assent commencement provisions ----------------------------------------------------------------------------- Australian Rural Bank Act 1977 156, 1977 10 Nov 1977 Part III (ss. 12-19): 22 Sept 1978 (see Gazette 1978, No. S185, p. 1) Remainder: Royal Assent Primary Industry Bank Amendment Act 1978 78, 1978 22 June 1978 22 June 1978 - Primary Industry Bank Amendment Act (No. 2) 1978 167, 1978 28 Nov 1978 28 Nov 1978 - ----------------------------------------------------------------------------- Table of Amendments ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted ----------------------------------------------------------------------------- Provision affected How affected ----------------------------------------------------------------------------- Title . . . . . . . . am. No. 78, 1978 S. 1 . . . . . . . . . rs. No. 78, 1978 Ss. 2, 3 . . . . . . . am. No. 78, 1978 Heading to Part II . . am. No. 78, 1978 Ss. 4-7 . . . . . . . am. No. 78, 1978 S. 8 . . . . . . . . . am. Nos. 78 and 167, 1978 Ss. 9-11 . . . . . . . am. No. 78, 1978 S. 13 . . . . . . . . rs. No. 78, 1978 Ss. 14-19 . . . . . . am. No. 78, 1978 Heading to Schedule . am. No. 78, 1978 Schedule . . . . . . . am. No. 78, 1978 -----------------------------------------------------------------------------

PRIMARY INDUSTRY BANK ACT 1977 - TABLE OF PROVISIONS 
TABLE

                              TABLE OF PROVISIONS

                              PART  I-PRELIMINARY

Section
  1.       Short title
  2.       Commencement
  3.       Interpretation

                   PART  II-THE  PRIMARY  INDUSTRY  BANK  OF  AUSTRALIA
  4.       Grant of authority to Bank to carry on banking business
  5.       Memorandum and articles of association
  6.       Commonwealth may acquire shares in Bank
  7.       Commonwealth may provide funds for Bank
  8.       Sources of funds provided by Commonwealth
  9.       Policies of Bank
  10.      Reports
  11.      Regulations

                     PART  III-AMENDMENTS  OF  THE  BANKING  ACT  1959
  12.      Principal Act
  13-19.   Amendments of the Banking Act 1959

                                    SCHEDULE

REQUIREMENTS  APPLICABLE  TO  MEMORANDUM  AND  ARTICLES  OF  ASSOCIATION  OF
                            PRIMARY  INDUSTRY  BANK

PRIMARY INDUSTRY BANK ACT 1977 - LONG TITLE 
SECT

An Act relating to the proposed Primary Industry Bank of Australia to be
established for the purpose of assisting in the financing of primary
production

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 1. 
Short title 
SECT

                              PART  I-PRELIMINARY
  1. This Act may be cited as the Primary Industry Bank Act 1977.*1*

See notes to first article of this CHAPTER.

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 2. 
Commencement 
SECT

  2.*1* (1) Subject to sub-section (2), this Act shall come into operation on
the day on which it receives the Royal Assent.

  (2) Part III shall come into operation on a date to be fixed by
Proclamation, being a date not earlier than the date on which the
Governor-General grants an authority under section 4 to the Primary Industry
Bank to carry on banking business.

See notes to first article of this CHAPTER.

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 3. 
Interpretation 
SECT

  3. In this Act, unless the contrary intention appears-
  "lender" means a person (other than a bank) whose business is or includes
the making of loans to primary producers;
  "Primary Industry Bank" or "Bank" means the company referred to in
sub-section 4 (1);
  "primary producer" means a person carrying on the business of primary
production;
  "primary production" means production resulting directly from-
     (a)  the cultivation of land;
     (b)  the maintenance of animals or poultry for the purpose of selling
them or their bodily produce, including natural increase;
     (c)  fishing operations; or
     (d)  forest operations,
    and includes the manufacture of dairy produce by the person who produces
the raw material used in that manufacture;
  "share", in relation to the Bank, means a share in the share capital of the
Bank, and includes stock.

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 4. 
Grant of authority to Bank to carry on banking business 
SECT

              PART  II-THE  PRIMARY  INDUSTRY  BANK  OF  AUSTRALIA
  4. (1) Upon the incorporation, under the law of a State or Territory
relating to companies, of a company by the name of the Primary Industry Bank
of Australia Limited, the Governor-General may, subject to section 5, grant to
the company an authority in writing to carry on banking business in Australia,
and the company may, notwithstanding section 8 of the Banking Act 1959, carry
on banking business in accordance with that authority.

  (2) Subject to sub-sections (5) and (6), the authority may be granted
subject to such conditions as are specified in the authority.

  (3) The Governor-General may at any time amend the authority by varying or
revoking any conditions or imposing conditions.

  (4) Conditions imposed under sub-section (2) or (3) may include-
  (a)  conditions to be imposed by the Bank with respect to loans to be made
by banks and lenders to primary producers by means of finance provided by the
Bank, and, in particular, conditions with respect to the purpose for which any
such loan may be made and the period within which any such loan is to be
repaid; and 
  (b)  such other conditions as are appropriate for the achievement of the
objects of the Bank.

  (5) In imposing conditions under sub-section (2) or (3), the
Governor-General shall have regard to the provision to be made by the Bank for
a return on its capital.

  (6) Nothing in this section authorizes the imposition of a condition with
respect to-
  (a)  a particular transaction of the Bank; or
  (b)  a particular transaction by a bank or lender by means of finance
provided by the Bank.

  (7) The Governor-General may revoke the authority if he is satisfied that-
  (a)  the Bank has contravened or failed to comply with a condition of the
authority or a requirement of this Act or the regulations; or
  (b)  the memorandum or articles of association of the Bank have ceased to
comply with section 5.

  (8) Sections 7 and 9 do not apply to or in relation to the Bank unless the
authority referred to in sub-section (1) has been granted to the Bank and has
not been revoked.

  (9) In this section, "authority" means the authority referred to in
sub-section (1).

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 5. 
Memorandum and articles of association 
SECT

  5. An authority shall not be granted under section 4 to the Primary Industry
Bank unless the memorandum and articles of association of the bank include
provision, to the satisfaction of the Treasurer, to the effect set out in the
Schedule.

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 6. 
Commonwealth may acquire shares in Bank 
SECT

  6. Notwithstanding anything contained in any other Act, the Treasurer may,
on behalf of the Commonwealth, subscribe for or otherwise acquire shares in
the Primary Industry Bank.

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 7. 
Commonwealth may provide funds for Bank 
SECT

  7. (1) Notwithstanding anything contained in any other Act, but subject to
sub-section 4 (8), the Treasurer may, from time to time, on behalf of the
Commonwealth, make grants or loans to the Primary Industry Bank on such terms
and conditions as are determined by the Treasurer and agreed to by the Bank.

  (2) Terms and conditions determined under sub-section (1) may include
arrangements for the provision of finance by the Bank to banks and lenders to
enable those banks and lenders to make loans of a kind referred to in clause 1
in the Schedule on terms more favourable to the borrowers than would otherwise
be practicable, and such terms and conditions may fix, or otherwise make
provision with respect to, rates of interest to be payable in respect of such
loans.

  (3) Terms and conditions determined under this section shall not be
inconsistent with regulations made for the purposes of sub-section 8 (3).

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 8. 
Sources of funds provided by Commonwealth 
SECT

  8. (1) Subject to sub-section (2), moneys required for the purposes of-
  (a)  making payments in respect of shares in the Primary Industry Bank
subscribed for or otherwise acquired by the Treasurer under section 6; and
  (b)  making grants or loans to the Bank under section 7,
shall be paid out of moneys provided by the Parliament.

  (2) A loan to the Bank under section 7 may, notwithstanding anything in the
Loan (Income Equalization Deposits) Act 1976, but subject to sub-section (3),
be made by-
  (a) investing on deposit in the Bank moneys standing to the credit of the
Income Equalization Deposits Trust Account; or
  (b) paying to the Bank moneys paid out of that Account.

  (3) A loan to the Bank in accordance with sub-section (2) shall not be made
except in accordance with regulations made for the purposes of this
sub-section that-
  (a) prescribe maximum limits with respect to the amounts that may from time
to time be lent to the Bank in accordance with sub-section (2); and
  (b) prescribe rates of interest to be payable in respect of loans made to
the Bank in accordance with sub-section (2).

  (4) Regulations made for the purposes of sub-section (3) may, in addition to
prescribing the matters referred to in that sub-section, prescribe other terms
and conditions to which loans referred to in paragraph (3) (b) are to be
subject.

  (5) Notwithstanding anything contained in any other Act, where a loan made
to the Bank, whether before or after the commencement of this sub-section, by
the payment to the Bank of moneys paid out of the Income Equalization Deposits
Trust Account is repaid, the moneys repaid shall be paid into that Account.

  (6) At any time when-
  (a)  moneys standing to the credit of the Income Equalization Deposits Trust
Account are invested on deposit in the Bank in accordance with sub-section
(2); or
  (b)  the sum of moneys paid out of that Account and paid to the Bank exceeds
the sum of such moneys that have been repaid,
there may be paid to the credit of that Account, out of the Consolidated
Revenue Fund, which is appropriated accordingly, an amount not greater than
the sum of the amount of any moneys referred to in paragraph (a) and the
amount of any excess referred to in paragraph (b) less the sum of any payments
previously made under this sub-section and not repaid.

  (7) Notwithstanding anything in the Loan (Income Equalization Deposits) Act
1976, moneys paid out of the Consolidated Revenue Fund under sub-section (6)
may be repaid out of the Income Equalization Deposits Trust Account, and, if,
at any time, the sum of the moneys so paid out of the Fund and not repaid
exceeds the sum of the amount of any moneys standing to the credit of that
Account invested on deposit in the Bank and the amount of any moneys paid out
of that Account and paid to the Bank and not repaid, an amount equal to the
amount of that excess shall be repaid under this sub-section.

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 9. 
Policies of Bank 
SECT

  9. (1) Subject to sub-section (3), the Primary Industry Bank may adopt such
policy as it determines with respect to any matter related to the conduct of
its business.

  (2) The Bank shall keep the Treasurer informed as to its policies and
proposed policies.

  (3) If the Treasurer so requests, the Bank shall consult the Treasurer in
relation to any policy or proposed policy with respect to the object of the
Bank referred to in clause 1 in the Schedule.

  (4) This section has effect subject to sub-section 4 (8).

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 10. 
Reports 
SECT

  10. (1) The Primary Industry Bank shall, as soon as practicable after the
expiration of each financial year of the Bank, prepare and furnish to the
Treasurer a report on its operations during that year, and the Treasurer shall
cause the report to be laid before each House of the Parliament within 15
sitting days of that House after its receipt by the Treasurer.

  (2) The Treasurer shall, at least once in each year, cause to be laid before
each House of the Parliament a report on the operation of this Part.

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 11. 
Regulations 
SECT

  11. (1) The Governor-General may make regulations, not inconsistent with
this Part, prescribing all matters that are required or permitted by this Part
to be prescribed or are necessary or convenient to be prescribed for carrying
out or giving effect to this Part, including provision for and in relation
to-
  (a)  the supply by the Primary Industry Bank of statistical and other
information to the Treasurer and to other prescribed persons; and
  (b)  the publication of any such information.

  (2) Regulations made by virtue of paragraph (1) (b) shall not be made so as
to-
  (a)  require information to be furnished with respect to the affairs of a
particular customer of the Bank or of a particular customer of a bank or
lender; or
  (b)  permit the publication of details of particular transactions.

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 12. 
Principal Act 
SECT

               PART  III-AMENDMENTS  OF  THE  BANKING  ACT  1959
  12. The Banking Act 1959 is in this Part referred to as the Principal Act.

PRIMARY INDUSTRY BANK ACT 1977 - SECT. 13-19. 
Amendments of the Banking Act 1959 
SECT

  13-19.*2*   *   *   *   *   *   *   *
                                ----------------
*2*Ss. 13-19-The amendments made by sections 13-19, as amended by the Primary
Industry Bank Amendment Act 1978, have been incorporated in the reprint of the
Banking Act 1959 which is published separately.

PRIMARY INDUSTRY BANK ACT 1977 - SCHEDULE 1 
SCH

                                    SCHEDULE 1
                                                                       Section
5 
REQUIREMENTS  APPLICABLE  TO  MEMORANDUM  AND  ARTICLES  OF  ASSOCIATION  OF
PRIMARY  INDUSTRY  BANK
  1. (1) The principal object of the Bank is to be the carrying on of banking
business in Australia and, in particular, the provision of finance to banks
and lenders.
  (2) The provision of finance to banks and lenders is to be for the purpose
of enabling those banks and lenders to make loans with a view to increasing
the availability of loan funds for purposes relating to primary production,
being purposes that are commercially sound, to persons who are, or have a
reasonable prospect of, successfully carrying on the business of primary
production.
  (3) The lenders to whom finance is to be provided are to be such lenders as
are considered by the Bank to be appropriate having regard to, among other
things, any shares in the Bank held by them or any loans made by them to the
Bank.
  (4) A loan referred to in sub-clause (2) may be for any period up to 30
years. 
  2. The Treasurer is to have the right, on behalf of the Commonwealth, to
subscribe for or acquire shares in the Bank.
  3. The directors of the Primary Industry Bank are to include-
  (a)  A person designated by the Treasurer to be the Chairman;
  (b)  a person designated by the Treasurer to represent the interests of the
Commonwealth; and
  (c)  2 persons designated by the Treasurer to represent the interests of
primary producers.