EXPLANATORY STATEMENT
STATUTORY RULES 1985 NO. 175
COMMONWEALTH INSCRIBED STOCK ACT 1911
COMMONWEALTH INSCRIBED STOCK REGULATIONS (AMENDMENTS)
ISSUED BY AUTHORITY OF THE TREASURER
The existing Regulation 66AA of the Commonwealth Inscribed Stock Regulations provides that where a bearer security is lost, stolen or destroyed the owner may apply to the Treasurer for the issue of a replacement security on the same terms and conditions as those on which the initial security was issued. The Treasurer may then, upon the applicant giving an indemnity to the satisfaction of the Treasurer to indemnify the Commonwealth against payment of the lost, stolen or destroyed bearer security or interest thereon, authorize the issue to the applicant, upon such conditions, if any, as the Treasurer determines, of a replacement security, to be in the form of inscribed stock and to be held in the charge of the Registrar.
Regulation 66AB provides that where an interest coupon detached from a bearer security has been lost, stolen or destroyed before it is paid, the Treasurer may, upon the owner giving an indemnity to the satisfaction of the Treasurer to indemnify the Commonwealth against payment of the coupon, authorise payment of the amount of the coupon to the owner.
The existing Regulations do not permit acceptance of an indemnity from a parent or guardian acting on behalf of an owner who is a minor as satisfying the indemnity requirements. At the same time, because it is considered that a minor lacks sufficient understanding by reason of youth to execute a binding indemnity, the minor’s indemnity cannot be accepted until sufficient maturity is reached for the indemnity to be judged as binding. This effectively prevents the issue of replacement securities to minors.
The proposed amendments to the Regulations will allow the Government to accept appropriate indemnities from a parent or guardian of an owner who is a minor thus enabling replacement securities or interest coupons to be issued.
The Treasury
Canberra ACT