WAR LOAN (UNITED KINGDOM) (No. 2)
No. 24 of 1916.
An Act to authorize the borrowing of money from the Government of the United Kingdom for War purposes.
[Assented to 30th May, 1916.]
BE it enacted by the King’s Most Excellent Majesty, the Senate, and the House of Representatives of the Commonwealth of Australia, as follows:—
Short title.
1. This Act may be cited as the War Loan Act (United Kingdom) (No. 2) 1916.
Authority to borrow £25,000,000.
2. The Treasurer may borrow Twenty-five million pounds from the Government of the United Kingdom.
Conditions of loan.
3. The rate of interest, the date of repayment and the form of security issued in respect of borrowings under this Act, may be such as are approved by the Governor-General.
Payment of principal and interest.
4. The principal moneys borrowed under this Act shall be repayable, and the interest thereon shall be payable, out of the Consolidated Revenue Fund, which is hereby appropriated for the purpose.
Purpose for which money may be expended.
5. The amount borrowed under this Act shall be issued and applied only to the expenses of borrowing and for war purposes: Provided that out of such amount temporary advances may be made to States in accordance with the States Loan Act 1916.
Regulations.
6. The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters which by this Act are required or permitted to be prescribed, or which are necessary or convenient to be prescribed, for carrying out or giving effect to this Act.
Overview
The War Loan Act (United Kingdom) (No. 2) 1916 was enacted to address the financial requirements of the Commonwealth of Australia during the First World War. Authorised by the King’s Most Excellent Majesty, the Senate, and the House of Representatives, this Act enables the Treasurer to borrow up to £25,000,000 from the Government of the United Kingdom specifically for war purposes. The borrowed funds are to be managed under conditions approved by the Governor-General, including the rate of interest, repayment date, and form of security. The Act appropriates the Consolidated Revenue Fund for repaying the principal and interest, and it stipulates that the borrowed amount can only be used for war expenses, with provisions for temporary advances to States under the States Loan Act 1916. The Governor-General has the authority to make regulations to implement and enforce the Act effectively.
Scope and Application
The War Loan Act (United Kingdom) (No. 2) 1916, enacted to support Australia's involvement in the First World War, empowers the Treasurer to borrow up to Twenty-five million pounds from the Government of the United Kingdom for war purposes. This Act applies to the Commonwealth of Australia and allows for the borrowing of funds to cover war expenses and other related costs, with interest and repayment conditions determined by the Governor-General. The Act stipulates that the borrowed funds shall be repaid and interest paid from the Consolidated Revenue Fund, which is designated for this purpose. Additionally, the Act permits the making of temporary advances to States in accordance with the States Loan Act 1916. The Governor-General has the authority to issue regulations that are necessary or convenient for the implementation and enforcement of the Act, provided they do not contradict its provisions.
Key Provisions
The War Loan (United Kingdom) (No. 2) Act 1916 (section 1) authorises the borrowing of £25,000,000 from the Government of the United Kingdom. The Act allows the Treasurer to undertake this borrowing under section 2. The conditions of the loan, including the interest rate, repayment date, and form of security, are to be approved by the Governor-General as per section 3. Section 4 stipulates that the repayment of the principal and the interest on the loan will be managed from the Consolidated Revenue Fund, which is specifically allocated for this purpose.
The Act imposes several obligations on the parties involved. Section 5 outlines that the borrowed funds are to be used exclusively for war expenses and the costs associated with the borrowing process. Additionally, section 5 allows for temporary advances to be made to States in accordance with the States Loan Act 1916. The Governor-General is empowered under section 6 to create regulations necessary for the implementation of the Act, ensuring all required or permitted matters are addressed.
Breaches of the provisions set forth in this Act may lead to various consequences. While the specific offences, penalties, and consequences are not detailed within the text, it can be inferred that non-compliance with the Act's stipulations or the regulations made under it could potentially result in legal action. The Act's focus on the allocation and use of funds for war purposes underscores the importance of adhering to its provisions to ensure proper financial management and accountability.