LOANS SECURITIES.
No. 82 of 1956.
An Act to amend the Loans Securities Act 1919.
[Assented to 7th November, 1956.]
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 and citation.
1.—(1.) This Act may be cited as the Loans Securities Act 1956.
(2.) The Loans Securities Act 1919 is in this Act referred to as the Principal Act.
(3.) The Principal Act, as amended by this Act, may be cited as the Loans Securities Act 1919–1956.
Commencement.
2. This Act shall come into operation on the day on which it receives the Royal Assent.
3. Section three of the Principal Act is repealed and the following section inserted in its stead:—
Conditions of loans.
“3.—(1.) Where under an Act the Treasurer has authority to borrow moneys in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911–1946, or in accordance with the provisions of an Act authorizing the issue of Treasury Bills, the Governor-General may, notwithstanding the provisions of those Acts, authorize the Treasurer—
(a) to borrow the moneys in such amounts as the Governor-General determines;
(b) to borrow the moneys in such manner, at such prices, and on such terms and conditions, as the Governor-General determines; and
(c) to issue such securities, and in such form, as the Governor-General determines.
“(2.) An authority under the last preceding sub-section may, instead of determining any matter referred to in paragraph (b) or (c) of that sub-section, authorize the Treasurer to determine that matter, and, in that case, the Treasurer is empowered to determine that matter.”.
4. After section six of the Principal Act the following section is inserted:—
Currency in which moneys may be borrowed.
“6a. Where, under an Act the Treasurer has authority to borrow moneys, the Governor-General may authorize the Treasurer to borrow the moneys in whole or in part in currency other than Australian currency, and, in that case, the Treasurer is empowered to borrow the moneys accordingly.”.
Overview
The Loans Securities Act 1956 was enacted by the Commonwealth Parliament to amend the existing Loans Securities Act 1919. This Act was introduced to address the need for more flexible borrowing powers for the Treasurer, enabling the government to respond more effectively to financial needs and economic conditions. By granting the Governor-General the authority to determine the terms and conditions under which the Treasurer can borrow moneys, the Act aimed to provide greater flexibility in managing the nation's finances. Additionally, it allowed for borrowing in currencies other than Australian currency, reflecting a broader approach to fiscal management and international financial engagement. This legislative update was essential for adapting to changing economic circumstances and ensuring the Commonwealth had the tools necessary for prudent financial governance.
Scope and Application
The Loans Securities Act 1956 amends the Loans Securities Act 1919, providing expanded powers to the Treasurer for borrowing moneys and issuing securities. The Act applies to the Treasurer of the Commonwealth, who is granted the authority to borrow moneys in accordance with the provisions of the Commonwealth Inscribed Stock Act 1911–1946 or an Act authorizing the issue of Treasury Bills. The Governor-General can authorize the Treasurer to borrow moneys in specific amounts, manners, prices, terms, and conditions, or delegate such powers to the Treasurer. Additionally, the Treasurer is empowered to borrow moneys in whole or in part in currencies other than Australian currency. The Act applies across the Commonwealth of Australia, providing a national scope for the enhanced borrowing and securities issuance powers. There are no specific exclusions or thresholds mentioned in the provided text, and the Act does not indicate whether subordinate instruments extend or restrict its application.
Key Provisions
The Loans Securities Act 1956 (C1956A00082) primarily amends the Loans Securities Act 1919, which is referred to as the Principal Act. Section 3 of the Principal Act is repealed and replaced with a new section (section 3 of the amended Act) that grants the Governor-General the authority to determine the conditions under which the Treasurer can borrow moneys, including the amounts, manner, prices, terms, and conditions of the borrowing, as well as the form and type of securities issued. This allows for flexibility in the borrowing process, with the possibility that the Treasurer may be authorised to determine these conditions instead of the Governor-General. Additionally, section 6a of the amended Act provides the Governor-General with the authority to allow the Treasurer to borrow moneys in currencies other than Australian currency.
The Act imposes several obligations on the parties it governs. Primarily, it requires the Governor-General to authorise the conditions under which the Treasurer may borrow moneys, although it provides the option for the Treasurer to determine these conditions if authorised. Furthermore, the Act requires that any borrowing under an Act must comply with the provisions of the Commonwealth Inscribed Stock Act 1911–1946 or any other Act authorising the issue of Treasury Bills. Additionally, the Act mandates that any borrowing must be in accordance with the authorisation provided by the Governor-General, including the specific terms and conditions of the borrowing and the form of any securities issued.
The Act also outlines specific offences and penalties for non-compliance with its provisions. However, the text of the Act does not detail the specific offences or penalties. It is likely that breaches of the Act could result in civil or criminal consequences, as is common with legislative provisions. The exact nature and severity of these consequences would depend on the specific breach and the relevant laws in place at the time of the breach. It is important for those governed by the Act to ensure strict compliance with its provisions to avoid any potential penalties or consequences.