Part 2 Financial accommodation
Division 2 Powers of authorities
7 Governor’s approval to financial accommodation
The Governor may, by order, approve of the obtaining of financial accommodation by an authority in accordance with this Act.
8 Power to obtain financial accommodation
(1) This section applies to an authority in respect of which an approval is in force under section 7.(2) For the purpose of exercising its functions, an authority may, in accordance with the written approval of the Treasurer, obtain financial accommodation within or outside Australia.(3) The Treasurer’s approval:(a) may be in respect of a specified purpose, or of 1 or more specified authorities, or of a specified class of authorities, and(b) may be otherwise specific or may be general, and(c) may be on such terms and subject to such conditions as the Treasurer thinks fit.(4) The terms on which the Treasurer’s approval is given may include, but are not limited to, terms as to any of the following:(a) the form of the financial accommodation to be obtained, including the currency in which it is to be obtained,(b) the manner in which it is to be obtained,(c) the terms and conditions on which it is to be obtained,(d) the security to be provided for it,(e) the instruments to be executed in connection with it.(5) Without limiting subsection (4) (c), the Treasurer’s approval may be subject to a condition that an agreement under which financial accommodation is obtained contains provisions in or to the effect of those referred to in section 8A.
8A Special provisions relating to ownership of buildings, structures or other fixtures
(1) An agreement under which financial accommodation is obtained by an authority may contain provisions in or to the effect:(a) that the ownership of specified buildings, structures or other fixtures is not vested in the owner of the land on which they are located, and(b) that such specified buildings, structures or fixtures are chattels and not real property, and(c) that such specified buildings, structures or fixtures can be transferred or leased to any person or otherwise dealt with in accordance with the terms and conditions of the Treasurer’s approval of the financial accommodation.(2) Despite any Act or rule to the contrary, any such provision has effect for all purposes (and not only as between the parties to the agreement in which the provision is contained), but only if the Treasurer’s approval to the obtaining of the financial accommodation was subject to a condition that the agreement contain the provision.
(1) The Treasurer may advance to an authority such money as may be determined by the Treasurer in consultation with the Minister for the authority.(2) The terms and conditions as to:(a) the repayment of money so advanced, and(b) the payment of interest on that money,shall, except to the extent that the Act (if any) by which the authority is constituted otherwise provides, be determined by the Treasurer in consultation with the Minister for the authority.
10 Provision of financial accommodation from Treasury Corporation
(1) Despite anything in this Act, but subject to subsection (2), an authority must not obtain financial accommodation otherwise than from the Treasury Corporation.(2) Subsection (1) does not apply:(a) in respect of the provision of financial accommodation by way of an advance of money by the Treasurer under section 9, or(b) to the extent of any exemptions under subsection (3).(3) The Treasurer may, by order in writing, grant exemptions from subsection (1). Such an exemption may be granted in relation to specified authorities, specified classes of authorities or all authorities or in relation to specified transactions, specified classes of transactions or all transactions, or any combination.
11 General powers in relation to obtaining financial accommodation
(1) An authority may do all things necessary or convenient to be done in connection with obtaining financial accommodation.(2) In particular, but without limiting the power given by this section, the authority may:(a) enter into any contract, agreement or other transaction,(b) incur any obligations under a contract, agreement or other transaction,(c) make any payment (including an advance) under a contract, agreement or other transaction,(d) make any covenants or promises, including those which are absolute and unconditional,(e) exercise such other functions as the Treasurer may approve, and(f) do or effect any of the things it is empowered to do under this Act by or through any entity controlled by the authority.(3) This section does not limit any powers that the authority has apart from this section.(4) (Repealed)
12 Provisions relating to authorities which obtain financial accommodation
Unless the Treasurer otherwise directs in a particular case, Schedule 2 has effect in relation to an authority which obtains financial accommodation.
Division 3 Protection of lenders
13 Treasurer’s approval as evidence
The written approval of the Treasurer to the obtaining of financial accommodation by an authority is conclusive evidence that anything done by the authority in accordance with the approval is authorised by this Act.
14 Application of financial accommodation
A person from whom an authority obtains financial accommodation is not bound to inquire into the application of the financial accommodation and is not responsible for any non-application or misapplication of it.
Division 4 Inter-agency financial accommodation
14A Inter-agency loans within same ministerial portfolio
(1) The portfolio Minister of an entity that is an authority may determine that an amount of money in the funds of or under the control of the authority is to be lent to another entity for which he or she is the portfolio Minister.(2) Any such amount is to be lent in accordance with that determination and on such terms and conditions as the portfolio Minister determines.
14B Application of Act to inter-agency loans within same portfolio
This Act (other than this Division) does not apply to or in respect of a loan made under this Division.
This Division is subject to and does not affect the operation or requirements of the Public Finance and Audit Act 1983, any Appropriation Act or any other Act (other than this Act).