Loans Securities Regulations
Statutory Rules 1937 No. 28 as amended
made under the
Loans Securities Act 1919
This compilation was prepared on 12 August 2004
taking into account amendments up to SR 1967 No. 135
Prepared by the Office of Legislative Drafting,
Attorney-General’s Department, Canberra
Contents
1 Citation [see Note 1]
2 Delegation
3 Lost, stolen, destroyed or mutilated securities
Notes
1 Citation [see Note 1]
These Regulations may be cited as the Loans Securities Regulations.
2 Delegation
(1) The Treasurer may, by writing under his hand, delegate to the Secretary to the Treasury all or any of his powers or functions under these Regulations (except this power of delegation) so that the delegated powers or functions may be exercised by the Secretary to the Treasury.
(2) A delegation under this regulation shall be revocable at will, and shall not prevent the exercise of any power or function by the Treasurer.
3 Lost, stolen, destroyed or mutilated securities
(1) Where a security is accidently lost, stolen, destroyed or mutilated before it is paid off, the owner may apply to the Treasurer for the issue of a certificate under this regulation.
(2) If the Treasurer is satisfied:
(a) that the security has been accidentally lost, stolen, destroyed or mutilated;
(b) that the applicant is the owner of the security; and
(c) that, in the case of a lost or stolen security, the applicant has not seen the security within the period of five years immediately preceding the date of the application,
the Treasurer may, subject to this regulation, and upon the applicant giving an indemnity bond to the satisfaction of the Treasurer to indemnify the Commonwealth against double payment of the security, including interest thereon, issue to the applicant a certificate, in accordance with a form approved by the Treasurer, of the indebtedness of the Commonwealth to the applicant in respect of the security.
(3) Where, in the opinion of the Treasurer, some person other than the owner has an interest in a lost, stolen, destroyed or mutilated security, the Treasurer may refuse to issue a certificate to the applicant unless:
(a) the consent in writing of that person has first been obtained; or
(b) in such cases as the Treasurer thinks fit, that other person gives an indemnity bond as provided by the last preceding subregulation.
(4) The preceding provisions of this regulation do not prevent the issue of a security in accordance with terms and conditions determined under section 3 of the Act that make provision with respect to the issue of a security in place of a security that is lost, stolen, destroyed or mutilated before it is paid off.
Notes to the Loans Securities Regulations
Note 1
The Loans Securities Regulations (in force under the Loans Securities Act 1919) as shown in this compilation comprise Statutory Rules 1937 No. 28 amended as indicated in the Tables below.
Table of Statutory Rules
Year and
number | Date of notification
in Gazette | Date of
commencement | Application, saving or
transitional provisions |
1937 No. 28 | 11 Mar 1937 | 11 Mar 1937 | |
1967 No. 135 | 29 Sept 1967 | 29 Sept 1967 | — |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
R. 3................. | am. 1967 No. 135 |
Overview
The Loans Securities Regulations (Statutory Rules 1937 No. 28 as amended) are subsidiary legislation made under the Loans Securities Act 1919. These regulations were introduced to address issues concerning the handling of lost, stolen, destroyed, or mutilated securities, ensuring that rightful owners can secure certificates of indebtedness from the Commonwealth. Enacted by the Australian Parliament, the regulations aim to provide a structured process for owners of compromised securities to apply for indemnity and replacement certificates, thereby safeguarding the interests of both the Commonwealth and the security holders. The Treasurer, who has the authority to delegate certain functions to the Secretary to the Treasury, plays a key role in managing these applications and ensuring that all processes are conducted in accordance with the established regulatory framework.
Scope and Application
The Loans Securities Regulations, which are made under the Loans Securities Act 1919, provide specific rules and procedures for the issuance of certificates in the event of lost, stolen, destroyed, or mutilated securities. These Regulations apply to any person or entity who owns a security that has been lost, stolen, destroyed, or mutilated before it is paid off. The geographic reach of these Regulations is confined to the Commonwealth of Australia, and they apply across all states and territories as they are federal regulations. The Treasurer, who is the head of the Department of the Treasury, holds the primary authority to delegate certain powers to the Secretary to the Treasury, as stipulated in the Regulations. There are no explicit exclusions or thresholds mentioned within these Regulations; however, the Treasurer may refuse to issue a certificate if another person has an interest in the security unless consent is obtained or an indemnity bond is provided. The Regulations allow for the issue of a security in place of a lost, stolen, destroyed, or mutilated one under certain terms and conditions determined under section 3 of the Act. The application and scope of these Regulations can be extended or restricted through subordinate instruments, though such instances are not specified in the provided text.
Key Provisions
The Loans Securities Regulations (1937) under the Loans Securities Act 1919 provide a framework for dealing with lost, stolen, destroyed, or mutilated securities. Section 3 of the Regulations permits the Treasurer to issue a certificate of indebtedness to an owner if certain conditions are met. Specifically, if a security has been lost, stolen, destroyed, or mutilated before it is paid off, the owner can apply to the Treasurer for a certificate (Reg 3(1)). The Treasurer may issue such a certificate if satisfied that the security was lost, stolen, destroyed, or mutilated accidentally, that the applicant is the rightful owner, and that if the security was lost or stolen, the applicant has not seen it in the five years preceding the application (Reg 3(2)). To safeguard against double payments, the applicant must provide an indemnity bond to the Treasurer (Reg 3(2)). However, if another person has an interest in the security, the Treasurer may refuse to issue the certificate unless the interested party consents in writing or provides an indemnity bond (Reg 3(3)).
The Regulations impose several obligations on the parties involved. The owner of the security must apply to the Treasurer for a certificate if the security is lost, stolen, destroyed, or mutilated (Reg 3(1)). The Treasurer is responsible for determining whether the conditions for issuing a certificate are met, including verifying the circumstances of the loss or mutilation and ensuring that the applicant is the rightful owner (Reg 3(2)). If another person has an interest in the security, the Treasurer must seek their consent or an indemnity bond before issuing the certificate (Reg 3(3)). Furthermore, the applicant must provide an indemnity bond to protect the Commonwealth against double payment of the security (Reg 3(2)).
There are no explicit offences, penalties, or civil/criminal consequences outlined in the Regulations themselves for breaches of the provisions. However, the requirement to provide an indemnity bond suggests a financial safeguard against potential double payments, which could be enforced through civil litigation if necessary. Additionally, any failure to comply with the conditions for issuing a certificate could result in the Treasurer denying the application, thereby preventing the issuance of a replacement security. The Regulations do not specify maximum penalties for non-compliance, implying that any enforcement actions would likely be pursued under the broader legal framework governing administrative decisions and financial obligations.