STATUTORY RULES.
1942. No. 366.
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REGULATIONS UNDER THE NATIONAL SECURITY ACT 1939-1940.*
I, THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulations under the National Security Act 1939-1940.
Dated this twenty-fifth day of August, 1942.
(SGD.) GOWRIE.
Governor-General.
By His Excellency’s Command,
for and on behalf of the Minister of State for Defence.
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Amendments of the National Security (Capital Issues) Regulations.†
Loans totalling less than £500 in any period of twelve months not affected.
1. Regulation 15 of the National Security (Capital Issues) Regulations is amended—
(a) by omitting the words “One thousand pounds” wherever occurring and inserting in their stead the words “Five hundred pounds”; and
(b) by inserting after paragraph (a) of sub-regulation (2.) the following paragraph:—
“(aa) any mortgage or charge given to a building society the amount of which does not exceed One thousand pounds;”.
Extensions and renewals.
2.—(1.) Regulation 18 of the National Security (Capital Issues) Regulations is amended by omitting from sub-regulation (1.) the words “the rate of interest payable under the mortgage or charge immediately
* Notified in the Commonwealth Gazette on August, 1942.
† Statutory Rules 1940, No. 218, as amended by Statutory Rules 1940, Nos. 242 and 291; 1941, Nos. 150 and 304; and 1942, Nos. 23, 126 and 196.
5981.—Price 3d. 15/24.8.1942.
prior to its extension or renewal, or the rate of Four pounds fifteen shillings per centum per annum, whichever is the higher.” and inserting in their stead the following paragraphs:—
“(a) in the case of a first mortgage or any charge (other than a mortgage or charge referred to in paragraph (b) of this sub-regulation)—the rate of interest payable under the mortgage or charge immediately prior to its extension or renewal, or the rate of Five pounds per centum per annum, whichever is the lower;
(b) in the case of a first mortgage or charge given to a building society, co-operative society or declared pastoral company —the rate of interest prescribed by any order under regulation 11 of the National Security (Economic Organization) Regulations in respect of any loan made by any such body; or
(c) in any other case—the rate of interest payable under the mortgage immediately prior to its extension or renewal.”.
(2.) This regulation shall come into operation on the fourteenth day of September, 1942.
By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
Overview
The Statutory Rules 1942, No. 366, issued under the National Security Act 1939-1940, were enacted to amend the National Security (Capital Issues) Regulations, reflecting the urgent need to adapt economic regulations in response to the demands of wartime national security. This legislative instrument was created to address the evolving financial landscape during the Second World War, aiming to stabilise and control capital issues more effectively. The amendments sought to ease certain restrictions on loans and mortgage extensions, providing flexibility while still maintaining a measure of control over economic activities that could impact national security. The Regulations were issued by the Governor-General in Council, demonstrating the legislative body's intent to swiftly implement necessary adjustments to support the war effort. The overarching policy objective was to balance the need for economic regulation with the practical requirements of a nation at war, ensuring that financial practices did not impede the war economy.
Scope and Application
The Statutory Rules 1942, No. 366, made under the National Security Act 1939-1940, pertain to the amendment of the National Security (Capital Issues) Regulations. These Regulations apply to various entities involved in financial transactions, including individuals, corporations, and financial institutions within the Commonwealth of Australia. The amendments address the threshold for loans not affected by the regulations, lowering the threshold from £1,000 to £500, and introduce specific exclusions for certain types of mortgages and charges. Furthermore, the Regulations provide for the extension and renewal of mortgages and charges, stipulating interest rates applicable to different categories of loans and financial instruments. The amendments extend to all financial transactions occurring within Australia, impacting the financial sector broadly. These regulations, however, do not affect loans totalling less than £500 within any twelve-month period and include specific exceptions for mortgages and charges up to certain amounts. The application and enforcement of these regulations may be further detailed and modified through subordinate instruments as necessary.
Key Provisions
The Regulations under the National Security Act 1939-1940, made by the Governor-General on the advice of the Federal Executive Council, primarily amend the National Security (Capital Issues) Regulations. The key amendment involves Regulation 15, which has been altered to reduce the threshold for certain loans from £1,000 to £500 in any twelve-month period. This change is aimed at making it easier for certain financial transactions to proceed without needing special authorisation. Furthermore, Regulation 15 now includes an exemption for mortgages or charges up to £1,000 given to building societies (Regulation 15(2)(aa)).
The Regulations also amend Regulation 18, which pertains to the extension or renewal of mortgages and charges. The amendment modifies the interest rate criteria for extensions or renewals, establishing that for a first mortgage or any charge (excluding those specified in Regulation 18(2)(b) and (c)), the interest rate should be the lower of the rate immediately prior to extension or renewal, or 5% per annum. For mortgages or charges given to building societies, co-operative societies, or declared pastoral companies, the interest rate should comply with the rate prescribed by an order under Regulation 11 of the National Security (Economic Organization) Regulations. These changes came into effect on 14 September 1942.
Entities and individuals governed by these Regulations must ensure that any loans, mortgages, or charges they seek to extend or renew comply with the newly specified interest rate criteria. For instance, if a first mortgage or charge is being extended or renewed, it must adhere to the lower of the previously applicable interest rate or 5% per annum. Additionally, any mortgage or charge given to a building society must comply with the rates prescribed by relevant orders under the National Security (Economic Organization) Regulations. Non-compliance with these interest rate stipulations could potentially render the extension or renewal of such financial instruments invalid or subject to further scrutiny.
Failure to adhere to the provisions set out in these Regulations may result in significant consequences. While the specific offences, penalties, or consequences for breach are not detailed within the text of the Regulations themselves, the overarching National Security Act 1939-1940 provides a framework under which breaches of the Regulations can be prosecuted. Under the Act, penalties for breaches can include fines and imprisonment, with the exact penalties varying depending on the severity and nature of the breach. It is essential for entities and individuals to carefully review and comply with the Regulations to avoid any potential legal ramifications.