DECLARATION OF APPROVED CAUSES OF LOSS
PURSUANT to section 21(1) of the Export Finance and Insurance Corporation Act 1991 (Cth) and a resolution of the Board, Export Finance and Insurance Corporation declares the following causes of loss to be approved causes of loss for the purposes of Part 4 of the Act:
(a) expropriation or confiscation of property;
(b) prevention or restriction of constructing, operating or dealing with property;
(c) damage to or loss of effective control over property caused by a war-like operation. (War-like operation includes any operation in the course of war (including civil war), terrorism, riot, civil commotion, revolution, insurrection, rebellion or any similar uprising);
(d) inability to transfer money to another country or convert money to another currency;
(e) breach of contractual obligations;
(f) inability to perform a contract due to external causes.
Export Finance and Insurance Corporation revokes all prior declarations of approved causes of loss to the extent to which they are applicable to it.
Dated and effective from this 3rd day of September 2004.
Executed as a deed
THE COMMON SEAL of EXPORT FINANCE AND INSURANCE CORPORATION was affixed in accordance with section 6(3) of the Export Finance and Insurance Corporation Act 1991 (Cth) in the presence of: __________________________ Name: Rizwan Akhund Title: Senior Counsel | )
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) | __________________________ Name: Angus Armour Title: Managing Director |
Overview
The Export Finance and Insurance Corporation Act 1991 (Cth) was enacted to provide financial assistance and insurance for Australian exports, addressing the need for a robust framework to support and protect Australian exporters in international markets. The Act was introduced by the Parliament of Australia to mitigate the risks associated with exporting goods and services, ensuring that Australian businesses can engage in international trade with a measure of security against certain losses. The policy objective of the Act is to facilitate and encourage the export of Australian goods and services by offering financial and insurance support, thus promoting economic growth and stability. The legislative instrument F2009B00238, dated and effective from 3rd September 2004, declares specific causes of loss to be approved under the Act, including expropriation, prevention of operations, war-like operations, transfer and currency conversion issues, breach of contracts, and inability to perform contracts due to external causes. This legislative instrument revokes all prior declarations of approved causes of loss to the extent applicable to the Corporation.
Scope and Application
The Legislative Instrument F2009B00238 pertains to the Export Finance and Insurance Corporation Act 1991 (Cth) and specifically addresses the approved causes of loss for the purposes of Part 4 of the Act. This instrument applies to the Export Finance and Insurance Corporation, establishing a comprehensive list of causes of loss that are deemed approved. These include, but are not limited to, expropriation or confiscation of property, prevention or restriction of constructing, operating, or dealing with property, damage or loss of control over property due to war-like operations, inability to transfer money to another country or convert money to another currency, breach of contractual obligations, and inability to perform a contract due to external causes. By declaring these causes of loss, the Export Finance and Insurance Corporation ensures that it has a clear framework for assessing and addressing risks associated with its operations. The instrument also revokes any prior declarations to the extent they are applicable, ensuring consistency and clarity in its approach.
Key Provisions
The Export Finance and Insurance Corporation (EFIC) has declared specific causes of loss under section 21(1) of the Export Finance and Insurance Corporation Act 1991 (Cth) and by virtue of a Board resolution. These approved causes of loss are outlined in the legislation as being applicable for the purposes of Part 4 of the Act. The approved causes of loss include expropriation or confiscation of property (section 21(1)(a)), prevention or restriction of constructing, operating, or dealing with property (section 21(1)(b)), damage to or loss of effective control over property caused by a war-like operation (section 21(1)(c)), inability to transfer money to another country or convert money to another currency (section 21(1)(d)), breach of contractual obligations (section 21(1)(e)), and inability to perform a contract due to external causes (section 21(1)(f)).
The Act imposes obligations and requirements on the EFIC and other entities it governs. The EFIC is obligated to declare these specific causes of loss as approved, which means they will be recognised under the provisions of the Act. This declaration also revokes any prior declarations of approved causes of loss to the extent they are applicable to the EFIC. The declaration aims to provide clarity and certainty for entities that may seek insurance or financial support from the EFIC in the event of these specified losses.
The legislation does not explicitly state any offences, penalties, or civil/criminal consequences for breach of the Act. However, it is implied that the failure to adhere to the approved causes of loss as declared by the EFIC could lead to disputes or challenges in claiming insurance or financial support under the Act. The Act's provisions are designed to ensure that the EFIC can provide effective support to entities affected by the specified causes of loss, thereby encouraging and facilitating international trade and investment.