Commonwealth Bank Regulations (Amendment)

Overview

Statutory Rules 1936, No. 71, made under the Commonwealth Bank Act 1911-1932, was enacted in 1936 to address the need to amend existing regulations concerning the Commonwealth Bank's lending practices. This legislative instrument was issued by the Governor-General in and over the Commonwealth of Australia, acting on the advice of the Federal Executive Council. The primary objective was to modify the list of prescribed primary produce eligible for specific banking services, thereby ensuring the Commonwealth Bank could better support Australia's agricultural sector during a time of economic recovery and growth. The regulation specifically added chicory to the list of primary produce that could be considered as collateral for loans, reflecting the evolving nature of Australia's primary industries at the time.

Scope and Application

This statutory instrument is an amendment made to the Commonwealth Bank Regulations under the Commonwealth Bank Act 1911-1932, extending its scope to include "chicory" as prescribed primary produce for the purposes of section 60a of the Act. The regulation applies to entities engaged in the banking sector, particularly the Commonwealth Bank, and those involved in the trade of primary produce listed under the Act, which now includes chicory. The amendment is geographically applicable across the Commonwealth of Australia and is intended to enhance the legislative framework governing financial institutions and primary produce transactions. While the regulation itself does not specify exclusions or exemptions, its application might be further refined or detailed through subordinate instruments issued under the authority of the Act. The inclusion of "chicory" in the list of prescribed primary produce signifies an expansion of the types of goods that can be secured by financial transactions with the Commonwealth Bank, thereby broadening the scope of the Act's application in the context of agricultural produce.

Key Provisions

The main operative section of this statutory instrument is the amendment to Regulation 30 of the Commonwealth Bank Regulations (Section 1). This amendment adds "chicory" to the list of prescribed primary produce as per section 60 of the Commonwealth Bank Act 1911-1932. The inclusion of "chicory" alongside other commodities such as "lamb-skins" suggests an update to the types of goods that can be mortgaged or used as collateral under the Bank's lending provisions. This update may reflect changes in the agricultural economy or financial practices of the time. The Act imposes specific obligations on the Commonwealth Bank to recognise "chicory" as a valid form of collateral for loans or other financial transactions. This amendment requires the Bank to update its internal policies and procedures to accommodate "chicory" alongside other listed primary produce. Such obligations ensure that the Bank maintains consistency and fairness in its lending practices, applying the same standards to all listed commodities. Failing to comply with the updated regulations could lead to legal consequences for the Commonwealth Bank. While the specific penalties are not detailed in the statutory rules, breaches of banking regulations typically result in fines or sanctions under the relevant banking laws. The exact penalties would depend on the nature and severity of the breach, but they could include substantial financial penalties, mandatory corrective actions, or even suspension of certain banking activities. This underscores the importance of adhering to the updated regulatory requirements to avoid potential legal and financial repercussions.