Export Finance and Insurance Corporation Regulations (Amendment)

Legislation au C1978L00271 Regulations Not in force Legislative Instrument

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Statutory Rules

1978 No. 271

REGULATIONS UNDER THE EXPORT FINANCE AND INSURANCE CORPORATION ACT 1974*

I, THE GOVERNOR-GENERAL of the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the Export Finance and Insurance Corporation Act 1974.

Dated this fourteenth day of December 1978.

ZELMAN COWEN

Governor-General

By His Excellency’s Command,

J. D. ANTHONY

Minister of State for Trade and Resources

 

AMENDMENTS OF THE EXPORT FINANCE AND INSURANCE CORPORATION REGULATIONS†

1. After regulation 9 of the Export Finance and Insurance Corporation Regulations the following regulation is inserted:

Limitation of amount of indemnity or guarantee

“ 9a. (1) An indemnity or guarantee given by the Corporation to an approved guarantor under sub-section 35b (1) of the Act shall not be in respect of an amount that exceeds 95 per cent of the amount of the liability, or proposed liability, of the approved guarantor in respect of which the indemnity or guarantee is given by the Corporation.

“ (2) In this regulation, ‘approved guarantor’ has the same meaning as in section 35a of the Act.”.

Maximum contingent liability—Divisions 2, 3 and 5 of Part III

2. Regulation 10 of the Export Finance and Insurance Corporation Regulations is amended—

(a) by omitting sub-regulation (1) and substituting the following sub-regulation:

 

* Notified in the Commonwealth of Australia Gazette on 21 December 1978.

† Statutory Rules 1975 No. 9 as amended by Statutory Rules 1977 No. 14.


“ (1) For the purposes of paragraph 76 (1) (a) of the Act, the amount is $1,500,000,000.”; and

(b) by omitting from sub-regulation (2) “ sub-section (1) ” and substituting “ paragraph 76 (1) (a) of the Act—”.

3. After regulation 11 of the Export Finance and Insurance Corporation Regulations the following regulation is inserted:

Maximum contingent liability—Division 6 Part III

“ 11a. (1) For the purposes of paragraph 76 (1) (c) of the Act, the amount is $30,000,000.

“ (2) For the purposes of paragraph 76 (1) (c) of the Act—

(a) where the Board has not given a notice under sub-section 35c (6) of the Act in respect of a contract entered into by the Corporation in accordance with an approval given for the purposes of section 35c—the contingent liability of the Corporation under the contract shall not be taken into account; and

(b) where the Board has given a notice under sub-section 35c (6) of the Act in respect of a contract entered into by the Corporation in accordance with an approval given for the purposes of section 35c—only such proportion of the contingent liability of the Corporation under the contract as corresponds to the proportion specified in the notice shall be taken into account.”.

Maximum amount of loans

4. Regulation 12 of the Export Finance and Insurance Corporation Regulations is amended—

(a) by omitting sub-regulation (1) and substituting the following sub-regulation:

“ (1) For the purposes of sub-section 77 (1) of the Act, the amount is $250,000,000.”; and

(b) by omitting from sub-regulation (2) “ For the purposes of sub-section (1)—” and substituting “ For the purposes of sub-section 77 (1) of the Act— ”.

Overview

Statutory Rules 1978 No. 271, made under the Export Finance and Insurance Corporation Act 1974, was introduced to amend the existing regulations in order to address gaps and limitations in the Corporation’s financial exposure and operational capabilities. Enacted by the Governor-General on advice from the Federal Executive Council, these regulations aim to refine the framework within which the Corporation operates, ensuring it can effectively support Australian exporters while managing risk appropriately. The policy objective is to provide clear guidelines on the maximum contingent liabilities and loan amounts the Corporation can undertake, thereby safeguarding the financial interests of both the Corporation and its stakeholders.

Scope and Application

The Export Finance and Insurance Corporation Regulations 1978, made under the Export Finance and Insurance Corporation Act 1974, apply to the Corporation, its activities, and its approved guarantors, which include entities or individuals involved in export transactions that the Corporation seeks to insure or guarantee. These regulations establish specific limitations and maximum contingent liabilities for the Corporation's guarantees and indemnities, impacting the financial exposure of the Corporation in its dealings. The geographic reach of these regulations is national, as the Corporation operates under the authority of the Commonwealth of Australia. The regulations do not explicitly state any exclusions but imply that they do not apply to entities or transactions not involving export finance and insurance. Additionally, the application of these regulations can be extended or restricted through subordinate instruments, allowing for adjustments to the specified limits and liabilities in response to changing economic conditions or other relevant factors.

Key Provisions

The key operative sections of these regulations focus on setting financial limits and conditions under which the Export Finance and Insurance Corporation can provide indemnities, guarantees, and loans. Regulation 9a (1) specifies that any indemnity or guarantee offered by the Corporation to an approved guarantor cannot exceed 95% of the guarantor's liability or proposed liability (Export Finance and Insurance Corporation Regulations, reg 9a(1)). Regulation 10 (1) establishes the maximum contingent liability for certain divisions within Part III of the Act, setting the limit at $1,500,000,000 (Export Finance and Insurance Corporation Regulations, reg 10(1)). Regulation 11a (1) further defines a specific maximum contingent liability for another division in Part III, capping it at $30,000,000 (Export Finance and Insurance Corporation Regulations, reg 11a(1)). Lastly, Regulation 12 (1) sets the maximum amount of loans the Corporation can provide under certain conditions at $250,000,000 (Export Finance and Insurance Corporation Regulations, reg 12(1)). These regulations impose specific obligations on the Corporation, ensuring that any indemnities or guarantees provided do not exceed 95% of the guarantor’s liability (Export Finance and Insurance Corporation Regulations, reg 9a(1)). The Corporation must also adhere to the financial limits set forth for contingent liabilities and loans, ensuring these do not exceed the specified amounts (Export Finance and Insurance Corporation Regulations, regs 10(1), 11a(1), 12(1)). Furthermore, the Board’s role is outlined in determining how contingent liabilities are accounted for in certain scenarios (Export Finance and Insurance Corporation Regulations, reg 11a(2)). Non-compliance with these regulations can lead to significant consequences. While specific offences and penalties are not detailed in the provided text, breaches of these financial limits and conditions could potentially result in civil or criminal liabilities under the broader Export Finance and Insurance Corporation Act 1974. The severity of penalties would depend on the nature and extent of the breach, but they could include fines or other financial penalties as stipulated in the overarching legislation.

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.