Qantas Airways Limited (Loan Guarantee) Act 1978
Act No. 19 of 1978 as amended
This compilation was prepared on 20 November 2000
taking into account amendments up to Act No. 186 of 1978
The text of any of those amendments not in force
on that date is appended in the Notes section
The operation of amendments that have been incorporated may be
affected by application provisions that are set out in the Notes section
Prepared by the Office of Legislative Drafting,
Attorney‑General’s Department, Canberra
Contents
1 Short title [see Note 1]...........................
2 Commencement [see Note 1].......................
3 Provision of credit deemed to be a borrowing..............
4 Guarantee of certain loans.........................
5 Conditions of guarantees..........................
6 Delegation..................................
Notes
An Act relating to the provision of certain equipment for Qantas Airways Limited
1 Short title [see Note 1]
This Act may be cited as the Qantas Airways Limited (Loan Guarantee) Act 1978.
2 Commencement [see Note 1]
This Act shall come into operation on the day on which it receives the Royal Assent.
3 Provision of credit deemed to be a borrowing
For the purposes of this Act, the provision of credit shall be deemed to be a borrowing to the extent of the amount of that credit.
4 Guarantee of certain loans
(1) The Treasurer may, on behalf of the Commonwealth, and subject to the conditions required by this Act, guarantee:
(a) the repayment by Qantas Airways Limited of amounts borrowed by it not exceeding its expenditure in connexion with the purchase by it of 2 Boeing 747 aircraft and related spare parts and equipment; and
(b) the payment of interest on amounts so borrowed.
(2) A guarantee or guarantees shall not be given under subsection (1) in respect of moneys borrowed in the currency of the United States of America, or in any other currency, exceeding in the aggregate $80,000,000 in the currency of the United States of America.
(3) For the purposes of subsection (2), the amount of a borrowing in a currency other than the currency of the United States of America shall be taken to be the amount in the currency of the United States of America that was equivalent to the first‑mentioned amount at the date of the borrowing, as ascertained by the Reserve Bank of Australia.
5 Conditions of guarantees
For the purpose of the protection of the financial interests of the Commonwealth, the Treasurer shall not give a guarantee under section 4 unless:
(a) the moneys are borrowed on terms and conditions that the Treasurer is satisfied are reasonable;
(b) proper security to the satisfaction of the Treasurer is, or is to be, given to the Commonwealth over the aircraft, spare parts and equipment to which the borrowing relates;
(c) undertakings to the satisfaction of the Treasurer are given that the aircraft, spare parts and equipment over which security is to be taken in accordance with paragraph (b):
(i) will be insured, and kept insured, against all risks that it is customary to insure, and to their full insurable value; and
(ii) will not be sold or made the subject of a mortgage or charge having priority over the security to the Commonwealth in respect of the guarantee; and
(d) such other conditions as the Treasurer thinks necessary are fulfilled.
6 Delegation
(1) The Treasurer may, either generally or as otherwise provided by the instrument of delegation, by writing signed by him, delegate to an officer of the Department of the Treasury any of his powers or functions under this Act, other than this power of delegation.
(2) A power or function so delegated, when exercised or performed by the delegate, shall, for the purposes of this Act, be deemed to have been exercised or performed by the Treasurer.
(3) A delegate is, in the exercise or performance of a power or function so delegated, subject to the directions of the Treasurer.
(4) A delegation under this section does not prevent the exercise of a power or the performance of a function by the Treasurer.
Notes to the Qantas Airways Limited (Loan Guarantee) Act 1978
Note 1
The Qantas Airways Limited (Loan Guarantee) Act 1978 as shown in this compilation comprises Act No. 19, 1978 amended as indicated in the Tables below.
Table of Acts
Act | Number and year | Date of Assent | Date of commencement | Application, saving or transitional provisions |
Qantas Airways Limited (Loan Guarantee) Act 1978 | 19, 1978 | 16 May 1978 | 16 May 1978 | |
Qantas Airways Limited (Loan Guarantee) Amendment Act 1978 | 186, 1978 | 4 Dec 1978 | 4 Dec 1978 | — |
Table of Amendments
ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted |
Provision affected | How affected |
S. 4.................... | am. No. 186, 1978 |
Overview
The Qantas Airways Limited (Loan Guarantee) Act 1978 was enacted by the Australian Parliament to address the financial needs of Qantas Airways Limited in relation to the purchase of two Boeing 747 aircraft and related spare parts and equipment. This Act allows the Treasurer, on behalf of the Commonwealth, to guarantee certain loans made to Qantas Airways Limited, subject to specific conditions designed to protect the financial interests of the Commonwealth. The primary objective of this legislation is to facilitate Qantas Airways Limited in acquiring essential assets by providing a guarantee that ensures the repayment of loans and the payment of interest, thereby mitigating financial risks associated with such significant purchases.
The Qantas Airways Limited (Loan Guarantee) Act 1978 came into effect on 16 May 1978, the day it received the Royal Assent. It mandates that the guarantee is subject to conditions such as the provision of reasonable borrowing terms, adequate security over the assets, insurance coverage, and other conditions deemed necessary by the Treasurer. Furthermore, the Treasurer has the authority to delegate certain powers and functions to an officer of the Department of the Treasury, ensuring that the administration of the guarantees can be efficiently managed while maintaining oversight and control.
Scope and Application
The Qantas Airways Limited (Loan Guarantee) Act 1978 applies specifically to the provision of financial guarantees by the Commonwealth Treasurer on behalf of the Commonwealth government to Qantas Airways Limited for the purchase of two Boeing 747 aircraft and related spare parts and equipment. This Act enables the Treasurer to guarantee repayment of loans not exceeding $80,000,000 USD, provided certain conditions are met, including reasonable borrowing terms, adequate security over the purchased assets, and full insurance coverage. The Act allows for delegation of the Treasurer's powers and functions to an officer of the Department of the Treasury, with such delegated powers being considered as exercised by the Treasurer. The Act is a Commonwealth law and applies nationally within Australia. There are no stated exclusions or exemptions within the primary Act, although the scope of application may be extended or restricted through subordinate instruments.
The Qantas Airways Limited (Loan Guarantee) Amendment Act 1978 amended the original Act to update certain provisions, though the specific changes are detailed in the appended notes. The operation of these amendments may be subject to application provisions outlined in the notes section. The Act came into operation on the day of Royal Assent, with the primary Act and its amendment commencing on the same date.
Key Provisions
The Qantas Airways Limited (Loan Guarantee) Act 1978 (sections 3 and 4) primarily provides for the guarantee of loans made by Qantas Airways Limited for the purchase of two Boeing 747 aircraft and related spare parts and equipment, up to a maximum aggregate amount of $80,000,000 in United States currency. The provision of credit is considered a borrowing for the purposes of this Act, as outlined in section 3. The Treasurer, on behalf of the Commonwealth, is empowered to guarantee such loans, subject to specific conditions stipulated in section 4.
Under section 4, the Treasurer is required to ensure that several conditions are met before providing a guarantee. These include that the loans are taken on reasonable terms and conditions, that proper security over the aircraft, spare parts, and equipment is provided to the Commonwealth, and that undertakings are given to insure the assets against all customary risks and to prevent them from being sold or subjected to charges that take priority over the Commonwealth's security. The Treasurer may also impose any additional conditions deemed necessary for the protection of the Commonwealth's financial interests.
The Act further stipulates that the Treasurer has the authority to delegate certain powers and functions to an officer of the Department of the Treasury, as outlined in section 6. This delegation allows for the efficient administration of the Act while ensuring that the Treasurer retains ultimate responsibility and oversight.
Breach of the conditions or failure to comply with the obligations set out in the Act may result in civil or criminal consequences. Although specific penalties are not detailed in the Act, non-compliance with financial guarantees and conditions could lead to legal action, financial penalties, or other sanctions as determined by relevant authorities. The potential for enforcement actions underscores the importance of adhering to the Act's provisions to maintain the integrity of the loan guarantee arrangement.