STATUTORY RULES.
1945. No. 107.
REGULATION UNDER THE NATIONAL SECURITY ACT 1939-1943.*
I, THE DEPUTY OF THE GOVERNOR-GENERAL in and over the Commonwealth of Australia, acting with the advice of the Federal Executive Council, hereby make the following Regulation under the National Security Act 1939-1943.
Dated this fourth day of July, 1945.
WINSTON DUGAN
Deputy of the Governor-General.
By His Excellency’s Command,
J. B. CHIFLEY
for and on behalf of the Minister of State for Defence.
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Amendments of the National Security (Capital Issues) Regulations.†
Certain loans totalling not more than £1,500 in twelve months not affected.
Regulation 15 of the National Security (Capital Issues) Regulations is amended—
(a) by omitting from sub-regulation (1.) the word “Nothing” and inserting in its stead the words “Subject to the next succeeding sub-regulation, nothing”;
(b) by omitting from that sub-regulation the words “Five hundred pounds” and inserting in their stead the words “One thousand five hundred pounds”;
(c) by inserting after sub-regulation (1.) the following sub-regulation:—
“(1a.) The last preceding sub-regulation shall not affect the application of any other provision of this Part to the giving of any mortgage or charge if—
(a) the property or assets the subject of the mortgage or charge consist of, or include, land;
(b) the mortgage or charge is a first mortgage or charge, or is a second or subsequent mortgage
* Notified in the Commonwealth Gazette on 5th July, 1945.
† Statutory Rules 1940, No. 218, as amended by Statutory Rules 1940, Nos. 242 and 291; 1941, Nos. 150 and 304; 1942, Nos. 23, 126; 196, 360 and 424; and 1945, No. 26.
3925.—Price 3d.
or charge to a person who already holds a first mortgage or charge on that property or those assets or any part thereof; and
(c) the rate of interest payable under the mortgage or charge exceeds the maximum rate which is, in accordance with the National Security (Economic Organization) Regulations, lawfully payable under the mortgage or charge or, if there is no such maximum rate, the rate of Four pounds fifteen shillings per centum per annum.”; and
(d) by omitting from sub-regulation (2.) the words “Five hundred pounds referred to in the last preceding sub-regulation” and inserting in their stead the words “One thousand five hundred pounds referred to in sub-regulation (1.) of this regulation”.
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By Authority: L. F. Johnston, Commonwealth Government Printer, Canberra.
Overview
The Statutory Rules 1945, No. 107, issued under the National Security Act 1939-1943, aims to amend the National Security (Capital Issues) Regulations. Enacted by the Deputy of the Governor-General in and with the advice of the Federal Executive Council, these regulations were introduced to address the need for financial controls during a period of national emergency, specifically focusing on capital issues to manage the economic impact of wartime measures. The policy objective is to provide a framework that ensures economic stability and security by regulating financial transactions, particularly those involving mortgages and charges on property and assets. The regulations seek to limit the amount of capital that can be raised through loans and to control interest rates to prevent excessive financial burdens on individuals and businesses during the war effort.
Scope and Application
This statutory instrument, made under the authority of the National Security Act 1939-1943, amends the National Security (Capital Issues) Regulations to adjust the threshold for capital issues that are exempt from specific regulatory requirements. The regulations apply to entities and individuals involved in capital transactions within the Commonwealth of Australia, focusing on the issuance of loans, mortgages, and charges, with a particular emphasis on those involving land. The amendment raises the threshold for exempt loans from £500 to £1,500 over a twelve-month period, while also introducing additional conditions under which higher interest rates on mortgages or charges may still be subject to regulation. This adjustment aims to refine the regulatory framework while maintaining oversight over significant financial activities that could impact national security during a period of economic and geopolitical transition. The changes reflect an adaptation to the evolving economic landscape and provide clarity on the scope and application of existing regulations.
Key Provisions
The Statutory Rules of 1945, No. 107, are regulations made under the National Security Act 1939-1943. They specifically amend the National Security (Capital Issues) Regulations, altering the financial limitations on certain loans (Regulation 15). The key change is the increase in the monetary threshold for loans that are not affected by these regulations, from £500 to £1,500 over a twelve-month period. Furthermore, Regulation 15(1a) introduces a condition that if the mortgage or charge involves land or if it is a second or subsequent charge, and if the interest rate exceeds the legally allowable rate, these loans are subject to the regulations regardless of the amount.
These regulations impose certain obligations on financial institutions and individuals engaged in issuing mortgages or charges. Financial institutions must ensure that any mortgage or charge involving land, or a second or subsequent charge, adheres to the interest rate limits set forth in the National Security (Economic Organization) Regulations. If the interest rate exceeds the legally allowable rate, the institution must comply with the provisions of the National Security Act 1939-1943, potentially impacting the terms and conditions of the loan.
For breaches of these regulations, the Act outlines potential civil and criminal consequences. While the specific penalties are not detailed in the regulation itself, breaches of the National Security Act 1939-1943 can generally result in fines and imprisonment. The severity of these penalties would depend on the nature and extent of the breach, as well as any relevant case law or statutory provisions that apply. Compliance with these regulations is crucial to avoid legal repercussions, including financial penalties and potential criminal charges.