PRIMARY INDUSTRY BANK AMENDMENT ACT (No. 2) 1978
No. 167 of 1978
An Act to amend the Primary Industry Bank Act 1977 in relation to the Income Equalization Deposits Trust Account.
BE IT ENACTED by the Queen, and the Senate and House of Representatives of the Commonwealth of Australia, as follows:
Short title, &c.
1. (1) This Act may be cited as the Primary Industry Bank Amendment Act (No. 2) 1978.
(2) The Primary Industry Bank Act 1977 is in this Act referred to as the Principal Act.
Commencement
2. This Act shall come into operation on the day on which it receives the Royal Assent.
Sources of funds provided by Commonwealth
3. Section 8 of the Principal Act is amended—
(a) by omitting sub-sections (2) and (3) and substituting the following sub-sections:
“(2) A loan to the Bank under section 7 may, notwithstanding anything in the Loan (Income Equalization Deposits) Act 1976, but subject to sub-section (3), be made by—
(a) investing on deposit in the Bank moneys standing to the credit of the Income Equalization Deposits Trust Account; or
(b) paying to the Bank moneys paid out of that Account.
“(3) A loan to the Bank in accordance with sub-section (2) shall not be made except in accordance with regulations made for the purposes of this sub-section that—
(a) prescribe maximum limits with respect to the amounts that may from time to time be lent to the Bank in accordance with sub-section (2); and
(b) prescribe rates of interest to be payable in respect of loans made to the Bank in accordance with sub-section (2).”; and
(b) by adding at the end thereof the following sub-sections:
“(5) Notwithstanding anything contained in any other Act, where a loan made to the Bank, whether before or after the commencement of this sub-section, by the payment to the Bank of moneys paid out of the Income Equalization Deposits Trust Account is repaid, the moneys repaid shall be paid into that Account.
“(6) At any time when—
(a) moneys standing to the credit of the Income Equalization Deposits Trust Account are invested on deposit in the Bank in accordance with sub-section (2); or
(b) the sum of moneys paid out of that Account and paid to the Bank exceeds the sum of such moneys that have been repaid,
there may be paid to the credit of that Account, out of the Consolidated Revenue Fund, which is appropriated accordingly, an amount not greater than the sum of the amount of any moneys referred to in paragraph (a) and the amount of any excess referred to in paragraph (b) less the sum of any payments previously made under this sub-section and not repaid.
“(7) Notwithstanding anything in the Loan (Income Equalization Deposits) Act 1976, moneys paid out of the Consolidated Revenue Fund under sub-section (6) may be repaid out of the Income Equalization Deposits Trust Account, and, if, at any time, the sum of the moneys so paid out of the Fund and not repaid exceeds the sum of the amount of any moneys standing to the credit of that Account invested on deposit in the Bank and the amount of any moneys paid out of that Account and paid to the Bank and not repaid, an amount equal to the amount of that excess shall be repaid under this sub-section.”.
Overview
The Primary Industry Bank Amendment Act (No. 2) 1978 was enacted to address specific issues within the existing framework of the Primary Industry Bank Act 1977, particularly concerning the management and use of the Income Equalization Deposits Trust Account. This Act was passed by the Queen, in and under the authority of the Parliament of the Commonwealth of Australia, to amend the Principal Act and ensure more precise controls and regulations on the use of funds from the Income Equalization Deposits Trust Account for loans to the Bank. The policy objective of the Act is to provide a clearer legal framework for the management of these funds, ensuring that repayments are appropriately directed back to the Trust Account and that there are explicit limits and interest rates governing such loans, as well as provisions for the replenishment of the Trust Account from the Consolidated Revenue Fund under certain conditions.
Scope and Application
The Primary Industry Bank Amendment Act (No. 2) 1978 applies to the Primary Industry Bank, particularly in relation to its funding mechanisms through the Income Equalization Deposits Trust Account. The Act amends the Primary Industry Bank Act 1977 to modify how loans can be made to the Bank using funds from the Income Equalization Deposits Trust Account, ensuring compliance with the Loan (Income Equalization Deposits) Act 1976. It specifies that loans can be made by either depositing or paying out moneys from the Trust Account, subject to prescribed maximum limits and interest rates set by regulations. This Act also governs the repayment of such loans, ensuring that repaid funds are returned to the Trust Account and that any shortfalls are compensated from the Consolidated Revenue Fund, with subsequent repayments made from the Trust Account if necessary. The Act applies nationwide as a Commonwealth legislation, impacting financial transactions involving the Primary Industry Bank and the Trust Account across Australia.
Key Provisions
The Primary Industry Bank Amendment Act (No. 2) 1978 (Act) modifies the Primary Industry Bank Act 1977 (Principal Act) by making changes to the sources of funds provided by the Commonwealth through the Income Equalization Deposits Trust Account. Under section 3(2) of the Principal Act, loans to the Bank can be made either by investing moneys standing to the credit of the Income Equalization Deposits Trust Account in the Bank or by paying moneys out of that account to the Bank, notwithstanding any other Act. These loans, however, must be made in accordance with regulations that prescribe maximum limits for the amounts that may be lent and rates of interest to be payable. Section 3(5) of the Act stipulates that if a loan made to the Bank by the payment of moneys out of the Income Equalization Deposits Trust Account is repaid, the repaid moneys shall be paid back into that account. Furthermore, section 3(6) allows for payments from the Consolidated Revenue Fund to the Income Equalization Deposits Trust Account when moneys from the account are invested in the Bank or when the sum of moneys paid out of the account and paid to the Bank exceeds the sum of such moneys that have been repaid, subject to certain conditions.
The Act imposes specific obligations and requirements on the parties involved, particularly concerning the management and use of the Income Equalization Deposits Trust Account. The Bank must ensure that any loans made using moneys from the account are in compliance with the regulations regarding maximum loan limits and interest rates. Furthermore, it must ensure that any repayments of loans are returned to the Income Equalization Deposits Trust Account. Additionally, the Commonwealth, through the Consolidated Revenue Fund, may need to make payments to the account to cover any shortfalls arising from the use of the account's moneys for loans to the Bank. These provisions are designed to maintain the integrity and availability of funds within the Income Equalization Deposits Trust Account for its intended purposes.
The Act does not explicitly state any offences, penalties, or civil or criminal consequences for breaches of its provisions. However, given that the Act amends an existing financial legislative framework, it can be inferred that any non-compliance with the regulations prescribed under section 3(3) or any mismanagement of funds within the Income Equalization Deposits Trust Account could potentially lead to legal repercussions. Such breaches might result in penalties under the broader financial administration and regulatory frameworks of which this Act is a part. It would be prudent for parties involved to adhere strictly to the provisions and any associated regulations to avoid any potential legal issues.