| C2004C07117 | STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 [Note: This Act is "repealed" by Act No. 118 of 1999]
(#DATE 28:02:1983)
- Reprinted as at 28 February 1983 *1* The Structural Adjustment (Loan Guarantees) Act 1974 as shown in this reprint comprises Act No. 155, 1974 amended as indicated in the Tables below. Table of Acts ----------------------------------------------------------------------------- Application, saving or Number Date Date of transitional Act and year of Assent commencement provisions ----------------------------------------------------------------------------- Structural Adjustment (Loan Guarantees) Act 1974 155, 1974 17 Dec 1974 17 Dec 1974 Companies (Miscellaneous Amendments) Act 1981 92, 1981 18 June 1981 Part XIII (ss. 43 and 44): 1 July 1982 (see Gazette 1982, No. S124, p. l) (a) - ----------------------------------------------------------------------------- (a) The Structural Adjustment (Loan Guarantees) Act 1974 was amended by Part XIII (sections 43 and 44) only of the Companies (Miscellaneous Amendments) Act 1981, sub-section 2 (3) of which provides that Part XIII shall come into operation on the day on which the Companies Act 1981 comes into operation. Table of Amendments ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted ----------------------------------------------------------------------------- Provision affected How affected ----------------------------------------------------------------------------- S. 8. . . . . . . . . am. No. 92, 1981 ----------------------------------------------------------------------------- STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - TABLE OF PROVISIONS
TABLE
TABLE OF PROVISIONS
Section
1. Short title
2. Commencement
3. Interpretation
4. Object of Act
5. Declaration of adjustment situations
6. Guarantees
7. Restrictions on giving of guarantees
8. Further conditions relating to guarantees
9. Moneys to be appropriated
10. Offences
11. Secrecy
12. Publication of certain particulars
13. Validity of guarantees
14. Regulations
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - LONG TITLE
SECT
An Act to authorize the giving of Guarantees on behalf of Australia in respect
of Loans made for the purposes of Structural Adjustment in Industry
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 1
Short title
SECT
1. This Act may be cited as the Structural Adjustment (Loan Guarantees) Act
1974.*1*
SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 2
Commencement
SECT
2. This Act shall come into operation on the day on which it receives the
Royal Assent.*1*
SEE NOTES TO FIRST ARTICLE OF THIS CHAPTER .
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 3
Interpretation
SECT
3. (1) In this Act, unless the contrary intention appears-
"firm" means a company, partnership or individual;
"guarantee" means a guarantee under this Act;
"national interest" means the interests of the Australian community
in
relation to matters that are, under the Constitution, the concern of
the
Australian Government, including matters incidental to the exercise of
the powers of the Australian Government;
"prescribed adjustment situation" means circumstances prescribed in
accordance with section 5.
(2) References in this Act to the Australian Government shall, where the
context so admits, be read as including references to the Parliament.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 4
Object of Act
SECT
4. (1) The object of this Act is, by assisting firms engaged in industrial
operations to change the nature of their operations, to facilitate structural
adjustments in industry that are necessary in the national interest as a
result of action taken by the Australian Government or that, by reason of
exceptional circumstances, it is desirable, in the national interest, should
be assisted by the Australian Government because the existing structure of a
particular industry is not conducive to the efficient use of resources, where
those adjustments are beyond the normal adaptive capacity of the economy and
where assistance under this Act would, at a cost that is reasonable in
relation to the benefits of the community resulting from the assistance,
prevent serious hardship or inequity in, or serious economic cost to, the
Australian community.
(2) Powers conferred by this Act, including the power of the
Governor-General to make regulations, shall be exercised for the achievement
of the object of this Act.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 5
Declaration of adjustment situations
SECT
5. (1) The regulations may declare particular circumstances to be an
adjustment situation for the purposes of this Act, being circumstances defined
by reference to particular actions of the Australian Government or by
reference to particular matters giving rise to the need for structural
adjustments of a kind referred to in section 4.
(2) Regulations declaring an adjustment situation shall specify the period
during which applications for guarantees in relation to that adjustment
situation may be made.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 6
Guarantees
SECT
6. Subject to this Act, the Minister may, on behalf of Australia, guarantee
the repayment of, and the payment of interest in respect of, loans made to, or
to be employed by, firms that are affected by a prescribed adjustment
situation.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 7
Restrictions on giving of guarantees
SECT
7. (1) The Minister shall not give a guarantee in respect of a loan in
relation to a prescribed adjustment situation unless he is satisfied that-
(a) the firm by which the loan moneys will be employed has been or is
being
adversely affected by the prescribed adjustment situation to such
extent
as to render a significant and distinct part of its assets incapable
of
economic use;
(b) the firm by which the loan moneys will be employed has taken
all
reasonable steps to adjust itself to that situation, including efforts
to
obtain finance on reasonable terms and conditions from normal
commercial
sources without a guarantee under this Act; and
(c) the manner in which the loan moneys are to be employed is
consistent with the national interest in relation to the use of
resources
and, where the prescribed adjustment situation relates to any action
of
the Australian Government, is consistent with the objective of the
Australian Government in taking that action.
(2) The Minister may give a guarantee in respect of a firm notwithstanding
that paragraph (1) (a) is not applicable if, in relation to the prescribed
adjustment situation concerned, structural adjustment by the industry in which
the firm is engaged is an objective of the Government but the Minister is
satisfied that the structural adjustment would not, without assistance by
guarantees under this Act, be likely to occur at a reasonable speed and at a
reasonable economic cost to the community.
(3) A guarantee shall not be given in respect of a loan where compensation
has been or will be paid by the Australian Government in respect of the assets
rendered incapable of economic use by reason of the prescribed adjustment
situation concerned.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 8
Further conditions relating to guarantees
SECT
8. (1) The Minister shall not give more than 1 guarantee in respect of any 1
firm in relation to any 1 prescribed adjustment situation and for that purpose
shall, unless he is satisfied that there are special circumstances that make
it unreasonable to do so, treat firms that are associated with one another as
1 firm.
(2) Subject to sub-section (3), a guarantee shall be in respect of such
amount and period, and may be given subject to such conditions applicable to
the lender or borrower, as the Minister determines, but the Minister may, with
the agreement of the lender and the borrower, reduce the amount or vary the
period or other conditions of the guarantee.
(3) A guarantee shall not extend to more than nine-tenths of the loan to
which it relates.
(4) The Minister shall not give a guarantee in respect of a loan unless-
(a) the loan moneys are, in his opinion, to be lent on reasonable terms
and
conditions;
(b) the lender has taken or is to take security to the satisfaction
of
the Minister and the terms of the guarantee-
(i) authorize the Minister to require the lender, in the event
of
default by the borrower, to exercise his rights in respect of the security
to
the best advantage before seeking payment under the guarantee; and
(ii) make provision for Australia to have the benefit of the
security
in the event of payment being made by Australia under the guarantee;
(c) the Minister is satisfied that assets over which the lender is to
take
security will be insured and kept insured to their full insurable
value
against all risks against which it is customary to insure and that
rates,
taxes, duties and charges in respect of those assets will be
punctually
paid, and such undertakings as the Minister thinks necessary for
safeguarding the interests of Australia in respect of those assets are
given; and
(d) the firm concerned agrees to give to any officer authorized by
the
Minister full access to its accounts, books and documents and such
information as the officer requires from time to time concerning the
assets of the firm.
(5) For the purposes of this section, 2 firms shall be deemed to be
associated if-
(a) they are companies that would be deemed to be related to each other
for
the purposes of the Companies Act 1981 if that Act were applicable to
them; or
(b) the ownership or control of their respective industrial
enterprises is otherwise so related that, in the opinion of the
Minister,
it is reasonable that they should be treated, for the purposes of this
Act, as being associated,
and a firm that is deemed to be associated with another firm shall be
deemed to be associated with any firm with which that other firm is deemed to
be associated.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 9
Moneys to be appropriated
SECT
9. Any moneys required to be paid by Australia under a guarantee shall be
paid out of moneys appropriated by the Parliament and lawfully available for
the purpose.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 10
Offences
SECT
10. (1) A person shall not, in or in connexion with an application for a
guarantee, knowingly make to a person having duties or functions for the
purposes of this Act, a statement, whether oral or in writing, or present to
such a person a book, record or document, that is false or misleading.
Penalty: $10,000 or imprisonment for 6 months.
(2) For the purpose of the application of this section in relation to a
company, but without prejudice to the liability of any person other than the
company-
(a) a statement made, or a book, record or document presented, by a person
acting on behalf of the company shall be deemed to have been made or
presented by the company; and
(b) the knowledge of any person employed by, or concerned in the
management of, the company shall be deemed to be knowledge of the
company.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 11
Secrecy
SECT
11. (1) Subject to this section, an officer performing duties for the
purposes of this Act shall not, either directly or indirectly, except for
purposes in connexion with this Act-
(a) make a record of, or divulge or communicate to any person, any
information concerning the affairs of a firm acquired by him in the
course of those duties; or
(b) produce to any person an application or document furnished for
the
purposes of obtaining a guarantee.
Penalty: $500 or imprisonment for 6 months.
(2) An officer to whom this section applies shall not be required to divulge
or communicate to a court any information referred to in sub-section (1) or to
produce in a court any document referred to in that sub-section, except where
it is necessary to do so for the purposes of, or of a prosecution under or
arising out of, this Act.
(3) In this section-
"court" includes a tribunal, authority or person having power to require
the
production of documents or the answering of questions;
"produce" includes permit access to, and "production" has a
corresponding meaning.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 12
Publication of certain particulars
SECT
12. The Minister shall cause to be published in the Gazette from time to
time and at least once in each financial year particulars of the names of
firms in respect of which guarantees have been given, the amounts of the loans
concerned and such other particulars, if any, in respect of guarantees as he
thinks fit, not being particulars relating to the affairs of particular firms
the disclosure of which would be likely to prejudice the business interests of
those firms.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 13
Validity of guarantees
SECT
13. The validity of a guarantee is not affected by the operation of any
provision of this Act referring to the satisfaction or opinion of the
Minister.
STRUCTURAL ADJUSTMENT (LOAN GUARANTEES) ACT 1974 - SECT 14
Regulations
SECT
14. The Governor-General may make regulations, not inconsistent with this
Act, prescribing all matters required or permitted by this Act to be
prescribed or necessary or convenient to be prescribed for carrying out or
giving effect to this Act, including regulations-
(a) prescribing classes of firms that are to be eligible for assistance by
way of guarantees; and
(b) requiring the verification by statutory declaration of matters
contained in applications for guarantees or other documents or records
supplied for the purposes of this Act.
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