STATUTORY RULES.
1922. No. 87.
REGULATIONS UNDER THE WAR GRATUITY ACTS 1920.
I, 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 War Gratuity Acts 1920, to come into operation forthwith.
Dated this 15th day of June 1922.
(Signed) FORSTER
Governor-General.
By His Excellency’s Command,
S. M. BRUCE.
Treasurer.
Amendment of War Gratuity Regulations.
(Statutory Rules 1920, No. 85, as amended to this date.)
After regulation 17 of the War Gratuity Regulations the following regulation is inserted:—
Bonds alienable in cases of debt or insolvency.
“18.—(1.) Where any person to whom a war gratuity bond in Form 6 of the Schedule to those Regulations has been issued under the Act or these Regulations becomes a bankrupt or insolvent, or where an execution order is issued against the property of such person in respect of debts owing by him, the interest of that person in the bond shall be alienable in favour of the official, receiver or trustee in bankruptcy or insolvency or the execution creditor as the case may be, and the bond may be taken by such receiver, trustee or creditor in satisfaction, in whole or in part, of the debts owing by the debtor.
“(2.) Any person taking a bond in pursuance of this regulation, shall deal with the bond in such manner as the Secretary to the Treasury directs.”.
Printed and Published for the Government of the Commonwealth of Australia by Albert J. Mullett, Government Printer for the State of Victoria.
Overview
The Statutory Rules 1922, No. 87, made under the War Gratuity Acts 1920, were introduced to address issues related to the alienation of war gratuity bonds in cases of bankruptcy, insolvency, or execution orders for debts. Enacted by the Governor-General in accordance with the advice of the Federal Executive Council, these regulations were established to provide a legal framework for the transfer of war gratuity bonds to creditors or trustees in instances where the bondholder becomes bankrupt, insolvent, or subject to an execution order for debt. The primary policy objective is to ensure that war gratuity bonds can be effectively used to satisfy debts, thereby providing a measure of financial recourse to creditors under specific circumstances.
Scope and Application
The War Gratuity Regulations, as amended by Statutory Rules 1922, No. 87, apply to war gratuity bonds issued under the War Gratuity Acts 1920. Specifically, these regulations pertain to individuals who have been issued a war gratuity bond in Form 6 of the Schedule to the War Gratuity Regulations, as well as entities such as receivers, trustees, and creditors involved in the administration of insolvency or execution orders against these individuals. The application of these regulations is national in scope, operating across the Commonwealth of Australia. The regulations address the alienability of war gratuity bonds in cases of bankruptcy, insolvency, or execution orders, allowing the interest of the debtor in the bond to be transferred to the relevant official or creditor. The inserted regulation 18 outlines the circumstances under which these bonds can be alienated and mandates that any transfer must be conducted in accordance with directions from the Secretary to the Treasury. This regulation ensures that the bonds can be used to satisfy debts owed by the debtor, providing a legal mechanism for the resolution of such financial obligations.
Key Provisions
The main operative section of these Regulations is regulation 18, which permits the alienation of a war gratuity bond in certain situations. Specifically, section 18(1) states that where a person who holds a war gratuity bond becomes bankrupt, insolvent, or where an execution order is issued against their property, their interest in the bond can be transferred to the relevant official, receiver, trustee, or creditor. This transfer can satisfy, in whole or in part, the debts owed by the debtor. Section 18(2) requires that any person who takes a bond under this regulation must follow the instructions of the Secretary to the Treasury regarding the handling of the bond.
The Regulations impose certain obligations on the parties involved. Firstly, the person who holds the war gratuity bond must ensure that their interest in the bond can be transferred if they become bankrupt, insolvent, or if an execution order is made against their property. Secondly, any person who takes a bond under regulation 18 must comply with the directions of the Secretary to the Treasury regarding the bond's handling. These obligations ensure that the process of transferring the bond in such situations is carried out in a controlled and lawful manner.
Breach of the obligations imposed by these Regulations may lead to civil or criminal consequences. Specifically, if a person fails to transfer their interest in a war gratuity bond when required by regulation 18(1), or if they do not follow the Secretary to the Treasury’s directions under regulation 18(2), they could be subject to legal action. While the Regulations do not specify penalties, breaches could potentially result in legal proceedings to enforce compliance or to recover any losses incurred due to non-compliance.