LOAN (No. 2).
No. 36 of 1944.
An Act to authorize the Raising and Expending of a certain Sum of Money.
[Assented to 6th October, 1944.]
BE it enacted by the King’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 (No. 2) 1944.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow £150,000,000.
3. The Treasurer may, from time to time, borrow, under the provisions of the Commonwealth Inscribed Stock Act 1911-1943, or under the provisions of any Act authorizing the issue of Treasury Bills, moneys not exceeding in the whole the amount of One hundred and fifty million pounds.
Purposes for which money may be expended.
4. The amount borrowed may be issued and applied only for the expenses of borrowing and for the purposes of appropriations made, or to be made, by law.
Issue and application of £150,000,000.
5. There may be issued and applied out of the proceeds of any loan raised under the authority of this Act, or of any other Act, the sum of One hundred and fifty million pounds for war purposes.
Overview
The Loan Act (No. 2) 1944 was enacted by the Parliament of the Commonwealth of Australia to address the urgent financial requirements during the Second World War. Assented to on 6th October, 1944, this Act empowers the Treasurer to borrow up to £150,000,000 to support the nation's war efforts. The funds authorised under this Act are intended solely for the expenses of borrowing and for purposes appropriated by law, ensuring that the borrowed money is applied strictly for war-related expenditures. The primary policy objective of this legislation is to facilitate the necessary financial resources to sustain the Commonwealth’s involvement in the war, reflecting the government's commitment to providing adequate support for the war effort.
Scope and Application
The Loan Act (No. 2) 1944, enacted to facilitate the financial needs of the Commonwealth during wartime, authorises the Treasurer to borrow up to £150,000,000 under the provisions of the Commonwealth Inscribed Stock Act 1911-1943 or any Act permitting the issuance of Treasury Bills. This Act applies to the Commonwealth of Australia and its Treasurer, allowing for the raising and expending of funds specifically for war-related expenses. The geographic reach of the Act is confined to the Commonwealth, and it encompasses the authority to issue and apply the borrowed funds, but only for expenses of borrowing and for purposes as appropriated by law. Notably, the Act explicitly states that the funds raised may only be used for war purposes, ensuring a clear and focused application of the borrowed capital. The Act does not specify any exclusions or exemptions, nor does it detail the use of subordinate instruments to extend its application.
Key Provisions
The Loan Act (No. 2) 1944 (sections 3 and 4) authorises the Treasurer to borrow up to £150,000,000 under the Commonwealth Inscribed Stock Act 1911-1943 or any Act permitting the issue of Treasury Bills. This borrowed money can only be used for expenses related to borrowing and for purposes specified in appropriations made or to be made by law. The Act further specifies in section 5 that the £150,000,000 raised can be issued and applied solely for war purposes.
The Act imposes specific obligations on the Treasurer and other relevant entities. The Treasurer is mandated to borrow funds within the specified limits and ensure they are used in accordance with the purposes outlined in the Act. The entities involved in the issuance and application of these funds must adhere to the legal frameworks provided by the Commonwealth Inscribed Stock Act 1911-1943 and any other relevant legislation pertaining to Treasury Bills. Additionally, the Act requires that all expenditures be strictly for war purposes, with proper documentation and oversight to ensure compliance.
There are no explicit offences, penalties, or civil/criminal consequences stated in the Loan Act (No. 2) 1944. However, non-compliance with the prescribed purposes for which the funds can be expended could potentially lead to legal scrutiny and the need to justify expenditures in line with the Act’s stipulations. The Act relies on the broader legislative and administrative frameworks to enforce adherence to its provisions, ensuring that the borrowed funds are used appropriately and legally.