Loans Securities Amendment Act 1988

Administered by Department of the Treasury

Legislation au C2004A03724 In force Act

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No. 131 of 1988

An Act to amend the Loans Securities Act 1919

[Assented to 22 December 1988]

BE IT ENACTED by the Queen, and the Senate and the House of Representatives of the Commonwealth of Australia, as follows:

Short title etc.

1. (1) This Act may be cited as the Loans Securities Amendment Act 1988.

(2) In this Act, “Principal Act” means the Loans Securities Act 19191.

Commencement

2. This Act commences on the day on which it receives the Royal Assent.

3. Section 3 of the Principal Act is repealed and the following section is substituted:

Conditions of loans

“3. (1) Where under an Act the Treasurer has the authority to borrow money in accordance with the Commonwealth Inscribed Stock Act 1911 or any Act authorising the issue of Treasury bills, the Governor-General may, in spite of anything in those Acts, in writing, authorise the Treasurer:

(a) to borrow the money in amounts not exceeding, in the aggregate, such amount as the Governor-General determines;

(b) to borrow the money:

(i) either by way of a single borrowing or by way of a program of borrowings, as the Governor-General determines;

(ii) in such manner as the Governor-General determines; and

(iii) at prices, and on terms and conditions, that are not less favourable to the Commonwealth than the prices, and the terms and conditions, determined by the Governor-General; and

(c) to issue, in such form as the Governor-General determines, such stock and securities as the Governor-General determines.

“(2) An authority under subsection (1) may, instead of determining any matter referred to in paragraph (1) (b) or (c), authorise the Treasurer to determine that matter and, in that case, the Treasurer is empowered to determine, in writing, that matter.”.

4. After section 5 of the Principal Act the following sections are inserted:

Powers of Treasurer in relation to borrowings outside Australia

“5a. Where the Treasurer is authorised to borrow money outside Australia, the Treasurer may, for the purposes of the borrowing:

(a) enter into agreements with banks or other financial institutions;

(b) enter into fiscal agency agreements;

(i) issue information memoranda in relation to the stock or security; and

(ii) issue any document necessary for the listing of the stock or security on any stock exchange or security market; and

(d) take any action (including the signing of any document) required or permitted to be taken by or on behalf of the Commonwealth:

(i) under any agreement referred to in paragraph (a) or (b) or following the issue of a document under paragraph (c); or

(ii) for any purpose relating to the borrowing.

Power of Treasurer to enter into swaps or other financial arrangements

“5b. (1) The Treasurer may, on behalf of the Commonwealth, enter into an agreement with any person or organisation or the government of any country, either within or outside Australia, under which:

(a) the Commonwealth undertakes to make payments in any currency to, or to the account of, the other party to the agreement; and

(b) the other party undertakes to make payments to, or to the account of, the Commonwealth, in the same or any other currency.

“(2) Any money payable by the Commonwealth under an agreement under subsection (1) and any expenditure incurred in connection with the negotiation, management or service of, or a repayment under, any such agreement, shall be paid out of the Consolidated Revenue Fund, which is appropriated accordingly.

Jurisdiction of foreign courts

“5c. (1) The Treasurer may, on behalf of the Commonwealth, enter into a written agreement or undertaking under which the Commonwealth agrees or undertakes to submit to the jurisdiction of a foreign court for the purposes of any action or proceeding before that court relating to:

(a) an agreement referred to in section 5a or subsection 5b (1); or

(b) the issue by the Treasurer of any stock or security in relation to the borrowing of money outside Australia.

“(2) Subject to any other Act, the Treasurer may, on behalf of the Commonwealth, in connection with:

(a) any action or proceeding referred to in subsection (1); or

(b) the execution of any order made or judgment given in such an action or proceeding;

waive, and enter into a written agreement or undertaking under which the Commonwealth agrees or undertakes to waive, any immunity from suit or other legal process of:

(d) any property or asset of, or in the custody of, or administered by, the Commonwealth (other than any property or asset used or intended to be used for any diplomatic, consular or military purpose).

Delegation

“5d. (1) The Treasurer may, by signed instrument, delegate to:

(a) a specified officer of the Department; or

(b) any person who from time to time holds, or performs the duties of, a specified office in the Department;

all or any of the following powers:

(c) the powers (if any) of the Treasurer under subsection 3 (2) to determine matters for the purposes of paragraph 3 (1) (b) or (c);

(d) the powers of the Treasurer under sections 5a, 5b and 5c.

“(2) The Treasurer may, by signed instrument, delegate to:

(a) a specified member of the diplomatic mission of Australia in a foreign country; or

(b) any person who from time to time holds, or performs the duties of, a specified post in the diplomatic mission of Australia in a specified foreign country;

all or any of the following powers:

(c) the powers (if any) of the Treasurer under subsection 3 (2) to determine matters for the purposes of paragraph 3 (1) (b) or (c);

(d) the powers of the Treasurer under section 5a;

(e) the powers of the Treasurer under section 5c in so far as they are exercisable for the purposes of an action or proceeding relating to:

(i) an agreement referred to in section 5a; or

(ii) the issue by the Treasurer of any stock or security in relation to the borrowing of money outside Australia.”.

NOTE

1. No. 25, 1919, as amended. For previous amendments, see No. 82, 1956; No. 55, 1959; No. 28, 1968; No. 216, 1973; No. 37, 1976; and No. 36, 1978.

[Minister’s second reading speech made in—

House of Representatives on 28 September 1988

Senate on 10 November 1988]

Overview

The Loans Securities Amendment Act 1988 (No. 131 of 1988) was enacted to amend the Loans Securities Act 1919, addressing the need for updated mechanisms in the process of borrowing money and managing securities. This Act was enacted by the Queen, with the assent of both the Senate and the House of Representatives of the Commonwealth of Australia. The primary objective of the Act is to provide the Treasurer with greater flexibility and authority in managing loans and securities, particularly in the context of borrowing outside Australia. This includes the ability to enter into various agreements, issue financial instruments, and manage financial arrangements such as swaps. The Act also allows for the delegation of certain powers to specified officers within the Department of the Treasury and to members of Australian diplomatic missions abroad, thereby streamlining the administration of these financial activities.

Scope and Application

The Loans Securities Amendment Act 1988 (C2004A03724) amends the Loans Securities Act 1919 to expand and clarify the powers of the Treasurer in relation to borrowing money and issuing stock and securities both domestically and internationally. The Act applies to the Treasurer and any individuals or entities authorised by the Treasurer to exercise powers under the amended legislation. It has a Commonwealth reach, as it pertains to the borrowing authority of the federal government. The Act modifies the conditions under which the Treasurer can borrow money and issue securities, allowing for greater flexibility in the manner and terms of borrowings, both domestically and internationally. It also extends the Treasurer’s ability to enter into financial arrangements, such as swaps, and to submit to the jurisdiction of foreign courts for certain legal proceedings. The Act does not specify exclusions or exemptions but allows for delegation of powers to certain officers and diplomatic personnel, thereby extending its application through subordinate instruments.

Key Provisions

The Loans Securities Amendment Act 1988 amends the Loans Securities Act 1919, introducing new provisions for the borrowing of money and the issuance of securities. Section 3 of the Principal Act is repealed and replaced with a new section (section 3) that allows the Governor-General to authorise the Treasurer to borrow money under certain conditions, including the amount, method, manner, and terms of borrowing (subsection 3(1)). The Governor-General may also delegate to the Treasurer the power to determine certain matters (subsection 3(2)). New sections 5a to 5d are inserted after section 5 of the Principal Act, granting the Treasurer specific powers in relation to borrowings outside Australia. These include entering into agreements with banks or financial institutions, fiscal agency agreements, issuing information memoranda and necessary documents for listing on stock exchanges, and entering into swaps or other financial arrangements with any person or organisation within or outside Australia (section 5a). The Treasurer may also enter into agreements submitting the Commonwealth to the jurisdiction of foreign courts in relation to certain agreements or the issue of stock or securities (section 5c). The Treasurer may also delegate certain powers to specified officers of the Department or members of the diplomatic mission of Australia in a foreign country (section 5d). The Act imposes several obligations and requirements on the parties it governs. The Governor-General must authorise the Treasurer to borrow money under certain conditions, including the amount, method, manner, and terms of borrowing (subsection 3(1)). The Treasurer must comply with any conditions set by the Governor-General in relation to the borrowing of money (subsection 3(1)). The Treasurer must also comply with any agreements entered into with banks or financial institutions, fiscal agency agreements, and any agreements submitting the Commonwealth to the jurisdiction of foreign courts (sections 5a and 5c). The Treasurer may delegate certain powers to specified officers of the Department or members of the diplomatic mission of Australia in a foreign country, subject to certain conditions (section 5d). Breach of any provision of the Act may result in criminal or civil consequences. However, the Act does not specify any particular offences, penalties, or consequences for breach. The maximum penalties for any offences would depend on the specific provisions of other Acts or laws that the Act interacts with, such as the Crimes Act 1914 or the Corporations Act 2001. In general, however, any person who contravenes a provision of the Act may be liable to a fine or imprisonment, or both, depending on the severity of the offence. Additionally, any person who suffers loss or damage as a result of a breach of the Act may be entitled to seek compensation or other remedies under relevant laws.

Area of Law: Commercial Law
Instrument: Act
Concepts: Definitions & Interpretation; Repeal & Amendment; Delegated & Subordinate Legislation; Enforcement Powers; Regulatory Standards

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Sourced from the Federal Register of Legislation at 26 August 2026. For the latest information on Australian Government law please go to https://www.legislation.gov.au.

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