Qantas Airways Limited (Loan Guarantee) Act 1976 (Cth)

QANTAS AIRWAYS LIMITED (LOAN GUARANTEE) ACT 1976

No. 139 of 1976

An Act relating to the Provision of certain Equipment for Qantas Airways Limited.

 

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

Short title.

1. This Act may be cited as the Qantas Airways Limited (Loan Guarantee) Act 1976.

Commencement.

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

Issue of securities deemed to be a borrowing.

3. For the purposes of this Act, the issue of promissory notes or other securities in consideration of the payment of moneys or the provision of credit shall be deemed to be a borrowing to the extent of the amount of those moneys or that credit.

Guarantee of certain loans.

4. (1) Subject to the conditions required by this Act, the Treasurer may, on behalf of the Commonwealth, give guarantees in respect of the liability of Qantas Airways Limited to pay the principal moneys and interest—

(a) secured by promissory notes or other securities related to the borrowing of moneys by Qantas Airways Limited for expenditure in connexion with the purchase by it of 3 Boeing 747 aircraft and related spare parts and equipment; or

(b) payable by Qantas Airways Limited in connexion with the borrowing of moneys by it for that expenditure.

(2) A guarantee or guarantees shall not be given under sub-section (1) in respect of moneys borrowed in the currency of the United States of America, or in any other currency, exceeding in the aggregate $117,000,000 in the currency of the United States of America.

(3) For the purposes of sub-section (2), the amount of a borrowing in a currency other than the currency of the United States of America shall be taken to be the amount in the currency of the United States of America that was equivalent to the first-mentioned amount at the date of the borrowing, as ascertained by the Reserve Bank of Australia.

Conditions of guarantees.

5. For the purpose of the protection of the financial interests of the Commonwealth, the Treasurer shall not give a guarantee under section 4 unless—

(a) the moneys are borrowed on terms and conditions that the Treasurer is satisfied are reasonable;

(b) proper security to the satisfaction of the Treasurer is, or is to be, given to the Commonwealth over the aircraft, spare parts and equipment to which the borrowing relates;

(c) undertakings to the satisfaction of the Treasurer are given that the aircraft, spare parts and equipment over which security is to be taken in accordance with paragraph (b)—

(i) will be insured, and kept insured, against all risks that it is customary to insure, and to their full insurable value; and

(ii) will not be sold or made the subject of a mortgage or charge having priority over the security to the Commonwealth in respect of the guarantee; and

(d) such other conditions as the Treasurer thinks necessary are fulfilled.

Delegation.

6. (1) The Treasurer may, either generally, or as otherwise provided by the instrument of delegation, by writing signed by him, delegate to an officer of the Department of the Treasury any of his powers or functions under this Act, other than this power of delegation.

 

(2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act, be deemed to have been exercised or performed by the Treasurer.

(3) A delegate is, in the exercise or performance of a power or function so delegated, subject to the directions of the Treasurer.

(4) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Treasurer.