Housing Loans Guarantees (Australian Capital Territory) Act 1959

Overview

The Housing Loans Guarantees (Australian Capital Territory) Act 1959 was enacted to facilitate borrowing by co-operative building societies and the Commissioner for Housing in the Australian Capital Territory. The Act was introduced to address the problem of ensuring that these entities could secure necessary funds for housing loans with confidence, thereby supporting the development and maintenance of housing infrastructure in the region. The Parliament of Australia enacted this Act to provide a mechanism through which the Commonwealth could guarantee the repayment of loans to these entities, thereby mitigating the risk for lenders and promoting financial stability within the housing sector. The policy objective of the Act is to enable the Treasurer to guarantee the repayment of loans, fostering an environment conducive to investment in housing by reducing the financial risk associated with lending.

Scope and Application

The Housing Loans Guarantees (Australian Capital Territory) Act 1959 provides a framework for the Commonwealth Treasurer to guarantee loans made to specific entities within the Australian Capital Territory. The Act applies to loans made to co-operative building societies that are registered under the laws of the Australian Capital Territory concerning co-operative societies, as well as loans made to the Commissioner for Housing, who holds office under the Housing Ordinance 1928-1957 of the Australian Capital Territory. The Act commences on the day it receives Royal Assent, and its terms and conditions for loan guarantees are to be agreed upon between the Treasurer and the lender. The Treasurer also has the authority to delegate any of their powers or functions under the Act to another person, with the exception of the power to delegate. The Act's application is limited to the Australian Capital Territory and does not extend to other states or territories.

Key Provisions

The Housing Loans Guarantees (Australian Capital Territory) Act 1959 (referred to as the Act) enables the Treasurer to guarantee loans made to certain entities, specifically co-operative building societies registered under a law of the Australian Capital Territory and the Commissioner for Housing under the Housing Ordinance 1928-1957 of the Australian Capital Territory. The Act allows for the guarantee of repayment to lenders, including any interest on the loans, under terms and conditions agreed upon between the Treasurer and the lender (section 4). The Act defines 'loan' broadly, to include an advance by way of overdraft (section 3(1)). Under the Act, the Treasurer is mandated to provide these guarantees to facilitate borrowing by the specified entities. The Treasurer has the authority to delegate any of their powers and functions under this Act, except for the power of delegation itself, to another person. This delegation can be general or specific, as outlined in the instrument of delegation (section 5). Importantly, any delegation is revocable at the Treasurer's discretion and does not preclude the Treasurer from exercising any powers or performing any functions themselves. Failure to comply with the requirements of the Act can result in legal consequences. While the Act does not explicitly outline specific offences or penalties, breaches of the terms and conditions agreed upon in the loan guarantees, or any misuse of delegated powers, could potentially lead to legal action under general principles of administrative law or contract law. The consequences would depend on the specific nature of the breach and could include financial penalties, legal costs, or other remedies available under applicable laws.