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Papua New Guinea Loans Guarantee Act 1974

Authoritative Version
Act No. 88 of 1974 as made
An Act to provide for the Giving of Guarantees by Australia with respect to Loans to be raised Overseas by Papua New Guinea, and for purposes connected therewith.
Administered by: Treasury
Date of Assent 24 Oct 1974
Date of repeal 16 Sep 2011
Repealed by Statute Stocktake Act (No. 1) 2011

PAPUA NEW GUINEA LOANS GUARANTEE ACT 1974

No. 88 of 1974

 

An Act to provide for the Giving of Guarantees by Australia with respect to Loans to be raised Overseas by Papua New Guinea, and for purposes connected therewith.

 

BE IT ENACTED by the Queen, the Senate and the House of Representatives of Australia, as follows:—

Short title.

1.   This Act may be cited as the Papua New Guinea Loans Guarantee Act 1974.

Commencement.

2.   This Act shall come into operation on the day on which it receives the Royal Assent.

Application of Act.

3.     This Act extends to Papua New Guinea.

Interpretation.

4. (1) In this Act, unless the contrary intention appears—

“guarantee” means a guarantee under sub-section 5(1), and includes any agreement entered into for the purposes of a guarantee;

“Papua New Guinea” means the Government of Papua New Guinea.

(2) For the purposes of this Act, where an amount in foreign currency is borrowed under an agreement, the equivalent of that amount in Australian currency is the amount determined by the Reserve Bank of Australia to be so equivalent at the time when the agreement is entered into.

Approval of guarantees.

5. (1) Subject to this section, if Papua New Guinea enters into an agreement under which Papua New Guinea is to, or may, borrow, by way of the sale of bonds or otherwise, an amount in a foreign currency, the Treasurer, or a person authorized by him, may, on behalf of Australia, give a guarantee in respect of the payment of all moneys, including interest, payable by Papua New Guinea under the agreement and may, for the purposes of the guarantee, enter into an agreement containing such terms as are approved by the Treasurer and the Minister for Foreign Affairs.

(2) A guarantee or guarantees shall not be given under sub-section (1) in relation to the borrowing, whether under 1 agreement or 2 or more agreements, of foreign currency the equivalent of which in Australian currency exceeds $20,000,000.

(3) For the purposes of sub-section (1), any form of undertaking of liability to pay any moneys shall be deemed to be a guarantee in respect of the payment of those moneys.

(4) A guarantee, when given, constitutes a valid and binding obligation of Australia in accordance with its terms.

(5) The power conferred by sub-section (1) shall not be exercised on or after the date on which Papua New Guinea becomes an independent sovereign state.

Appropriation.

6.   Any payments by Australia under a guarantee are payable out of the Consolidated Revenue Fund, which is appropriated accordingly.

Moneys to be paid free of taxes, &c.

7.   A provision of a guarantee or of an agreement to which a guarantee relates providing for—

(a) payments to be made without deduction for, or to be free from, taxes, imposts or duties;

(b) documents to be free from taxes or duties; or

(c) payments to be free from restrictions, regulations, controls or moratoria,

has effect as if enacted by this Act and operates notwithstanding anything in any law of Australia or of a State or Territory, whether passed or made before or after the commencement of this Act.