Commonwealth Banks Act 1962

Overview

The Commonwealth Banks Act 1962 was enacted to address the need for additional capital within the Commonwealth Development Bank of Australia, specifically to increase its capital by an additional five million pounds. This legislation was introduced to facilitate the bank's operations, ensuring it had the necessary financial resources to support economic development initiatives. Enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, the policy objective was to bolster the bank's financial capacity to better serve the nation’s developmental needs. The Act, which came into effect on the day it received Royal Assent, amended the Commonwealth Banks Act 1959–1961 to include this additional capital injection, thereby enhancing the bank's ability to fund and support various economic and infrastructural projects.

Scope and Application

The Commonwealth Banks Act 1962 applies to the Commonwealth Development Bank of Australia, specifically focusing on increasing its capital. This Act serves as an amendment to the Commonwealth Banks Act 1959–1961, extending its coverage to include the additional capital appropriation as per this 1962 Act. The legislative focus is on the financial structure of the Commonwealth Development Bank, with no explicit mention of its application to other entities, industries, or conduct. The geographic and jurisdictional reach of the Act is limited to the Commonwealth level, impacting the bank's capital on a national scale. There are no stated exclusions, exemptions, or thresholds in the provided text. The Act may extend its application through subordinate instruments, but this is not explicitly detailed in the text. The Act came into operation on the day it received Royal Assent, as stipulated in section 2 of the Act.

Key Provisions

The Commonwealth Banks Act 1962 primarily focuses on increasing the capital of the Commonwealth Development Bank of Australia by five million pounds (sections 1-3). This Act amends the existing Commonwealth Banks Act 1959–1961, effectively updating it to the Commonwealth Banks Act 1959–1962. The Act comes into operation immediately upon receiving Royal Assent (section 2). The core provision of this Act is the amendment of section seventy-five of the Commonwealth Banks Act 1959–1961 to increase the authorised capital of the Commonwealth Development Bank by the specified sum of five million pounds, to be paid by the Commonwealth from the Consolidated Revenue Fund (section 3(1)-(2)). The Act imposes specific obligations on the Commonwealth to pay the increased capital sum to the Commonwealth Development Bank (section 3). This payment is to be made from the Consolidated Revenue Fund, as appropriated (section 3(2)). The Act ensures that the financial resources of the Development Bank are augmented, thereby enabling it to undertake additional or expanded activities as may be required to support national economic development. Breaches of the provisions in this Act, while not explicitly detailed, could potentially lead to administrative or financial repercussions for the Commonwealth or the Commonwealth Development Bank. The Act does not explicitly state offences, penalties, or consequences for non-compliance. However, given its nature, failure to comply with the capital payment requirement could potentially lead to financial instability for the Development Bank, impacting its ability to function effectively. The exact civil or criminal consequences for non-compliance are not specified within the text of this Act.