LOAN.
No. 19 of 1962.
An Act to Authorize the Raising and Expending of a sum not exceeding Sixty million pounds for Defence Purposes.
[Assented to 6th April, 1962.]
BE it enacted by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the Loan Act 1962.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow £60,000,000.
3. The Treasurer may, during the year that commenced on the first day of July, One thousand nine hundred and sixty-one, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911–1946, or under the provisions of any Act authorizing the issue of Treasury Bills, moneys not exceeding in the whole Sixty million pounds.
Purposes for which moneys borrowed may be applied.
4. Moneys borrowed under this Act shall be issued and applied for the expenses of borrowing and—
(a) as to a sum not exceeding Forty-one million pounds—for the purpose of meeting expenditure specified in Part I. of the Second Schedule to the Appropriation Act 1961–62 under the heading “XX.—DEFENCE SERVICES.”; and
(b) as to a sum not exceeding Nineteen million pounds—for the purpose of paying off, repurchasing or redeeming Commonwealth securities issued for war purposes.
Overview
The Loan Act 1962 was enacted to address a significant financial requirement for defence purposes. Assented to on the 6th of April, 1962, this legislation was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia. It authorised the Treasurer to borrow up to £60,000,000 during the fiscal year beginning on the 1st of July, 1961, under either the Commonwealth Inscribed Stock Act 1911–1946 or any Act permitting the issuance of Treasury Bills. The primary objective of this Act was to facilitate the allocation of these borrowed funds for defence-related expenses and the repayment of war-related securities, thereby ensuring the nation's defence capabilities were adequately supported.
Scope and Application
The Loan Act 1962 authorises the Treasurer to borrow a sum not exceeding Sixty million pounds for specified defence purposes during the fiscal year commencing on the first day of July, 1961. This Act applies to the Commonwealth of Australia and comes into effect immediately upon receiving Royal Assent. The funds raised under this Act may be utilised for the expenses related to the borrowing process, up to Forty-one million pounds for defence services as outlined in the Second Schedule of the Appropriation Act 1961–62, and up to Nineteen million pounds for the repayment, repurchase, or redemption of Commonwealth securities issued for war purposes. The Act provides clear parameters on the application of the borrowed funds and does not extend beyond these specified uses.
Key Provisions
The Loan Act 1962 (sections 3 and 4) provides the framework for the Treasurer to borrow up to sixty million pounds for specific defence purposes during the financial year starting July 1, 1961. This borrowing can be done under the Commonwealth Inscribed Stock Act 1911–1946 or any Act that authorises the issuance of Treasury Bills. The funds obtained from this borrowing can be used for defence-related expenses and for paying off, repurchasing, or redeeming Commonwealth securities issued for war purposes.
Under the Loan Act 1962, the Treasurer has a defined role in ensuring that the borrowed funds are applied strictly according to the purposes outlined in the Act. Specifically, up to forty-one million pounds can be allocated to defence services as detailed in the Appropriation Act 1961–62, while up to nineteen million pounds can be used for redeeming war-related securities. The Act mandates that these funds must not be diverted for any other purpose, ensuring financial discipline and accountability in the use of public funds for defence.
Breaches of the Loan Act 1962 can result in significant legal consequences. Although the Act does not explicitly state offences or penalties, any misuse of the funds borrowed under this Act could potentially lead to legal actions for misapplication of public funds, which can carry substantial civil and criminal penalties. Under general law, such breaches may result in fines, imprisonment, or both, depending on the severity and intent of the misuse.
In summary, the Loan Act 1962 provides the legal foundation for the borrowing of up to sixty million pounds for defence purposes, with strict guidelines on the application of these funds. The Act imposes clear obligations on the Treasurer to ensure the funds are used as intended and does not explicitly outline penalties, but violations could lead to severe legal consequences under broader public law principles.