LOAN (No. 2).
No. 79 of 1962.
An Act to Authorize the Raising and Expending of a sum not exceeding One hundred and eighteen million three hundred and twenty-eight thousand pounds for Defence Purposes.
[Assented to 12th December, 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 (No. 2) 1962.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Authority to borrow £118,328,000.
3. The Treasurer may, during the year that commenced on the first day of July, One thousand nine hundred and sixty-two, 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 One hundred and eighteen million three hundred and twenty-eight thousand pounds.
Purposes for which moneys borrowed may be applied.
4. Moneys borrowed under this Act shall be issued and applied only for the expenses of borrowing and—
(a) as to a sum not exceeding Ninety-eight million two hundred and eighty-three thousand pounds—for the purposes and services expressed in Part I. of the Second Schedule to the Appropriation Act 1962-63 under the heading “XX.—DEFENCE SERVICES.”; and
(b) as to a sum not exceeding Twenty million and forty-five thousand pounds—for the purpose of paying off, repurchasing or redeeming Commonwealth securities issued for war purposes.
Limitation of expenditure.
5.—(1.) Nothing in the preceding provisions of this Act or in the Appropriation Act 1962-63 shall be taken to authorize the expenditure for a purpose or service expressed in Part I. of the Second Schedule to the Appropriation Act 1962-63 under the heading “XX.—DEFENCE SERVICES.” of an amount the expenditure of which would result in the total expenditure under the two Acts for that purpose or service exceeding the amount specified in that Part in respect of that purpose or service.
(2.) The last preceding sub-section does not affect the expenditure of the moneys appropriated by the Appropriation Act 1962-63 under the head “Advance to the Treasurer”.
(3.) Nothing in this Act shall be taken to authorize expenditure (otherwise than for the expenses of borrowing) after the thirtieth day of June, One thousand nine hundred and sixty-three.
Overview
The Loan Act (No. 2) 1962 was enacted to provide the Commonwealth with the financial resources necessary for defence purposes during the fiscal year beginning 1 July 1962. This Act was passed by the Queen’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, with the aim of authorising the borrowing of up to £118,328,000. The funds raised under this Act were to be applied specifically for defence services and for the repayment of Commonwealth securities issued for war purposes. The enactment of this Act sought to address the financial requirements for national defence, ensuring that the government could meet its obligations in this critical area within the specified fiscal year.
Scope and Application
The Loan Act (No. 2) 1962 applies to the Treasurer of the Commonwealth of Australia, who is authorized to borrow a sum not exceeding one hundred and eighteen million three hundred and twenty-eight thousand pounds for specific defence purposes. The Act came into operation on the day it received Royal Assent, thereby allowing the Treasurer to proceed with the borrowing as soon as possible. The funds raised under this Act are intended for the expenses related to the borrowing process and can be applied to specific defence services and for paying off, repurchasing, or redeeming Commonwealth securities issued for war purposes. This Act also includes a limitation on expenditure, ensuring that the total spending on defence services does not exceed the amount specified in the Appropriation Act 1962-63 and that no further expenditures for these purposes are authorised beyond 30 June 1963. The Act does not extend its application through subordinate instruments and is strictly limited to the financial year commencing on 1 July 1962.
Key Provisions
The Loan Act (No. 2) 1962 allows the Treasurer to borrow up to £118,328,000 for defence purposes, as stated in Section 3. The borrowed funds can only be used for expenses related to borrowing and specifically for defence services and the repayment of war-related securities, as outlined in Section 4. The funds are to be spent within the constraints of the Appropriation Act 1962-63, which means that defence expenditures must not exceed the limits set out in that Act, according to Section 5(1). Notably, Section 5(2) clarifies that the limitation does not apply to the moneys appropriated under the heading "Advance to the Treasurer," and Section 5(3) stipulates that no expenditure beyond the borrowing expenses is permitted after 30 June 1963.
The Act imposes several obligations on the parties involved, primarily on the Treasurer. Section 3 mandates that the borrowing must be conducted under the provisions of either the Commonwealth Inscribed Stock Act 1911-1946 or any Act that authorises the issue of Treasury Bills. Section 4 requires that the borrowed funds are only to be used for the purposes specified, namely, defence services and the repayment of war-related securities. Furthermore, Section 5(1) ensures that the borrowing does not exceed the defence expenditure limits set in the Appropriation Act 1962-63, while Section 5(3) enforces a cessation of any further expenditure beyond borrowing costs after 30 June 1963.
In terms of penalties and consequences for breach, the Act does not explicitly state any specific penalties for non-compliance with its provisions. However, any misuse of funds or exceeding the specified expenditure limits could potentially result in legal ramifications under other applicable laws, such as financial mismanagement or breaches of public trust. The absence of a stated penalty within this Act implies that any violations would be subject to the general legal consequences under Australian law.