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Housing Loans Insurance Act 1965

Act No. 10 of 1965 as amended, taking into account amendments up to Act No. 216 of 1973
Registered 26 Nov 2009
Start Date 31 Dec 1973
End Date 07 Jun 1977
Date of repeal 13 Jun 1998
Repealed by Housing Loans Insurance Corporation (Transfer of Assets and Abolition) Act 1996

HOUSING LOANS INSURANCE ACT 1965
- Reprinted as at 19 December 1973 (HISTACT2 CHAP 79 #DATE 19:12:1973)

HOUSING LOANS INSURANCE ACT 1965-1973 - TABLE OF PROVISIONS

TABLE


HOUSING LOANS INSURANCE ACT
1965-1973

TABLE OF PROVISIONS

PART I-PRELIMINARY
Section
1. Short title
2. Commencement
3. (Repealed)
4. Interpretation
5. Approved lenders

PART II-ESTABLISHMENT OF THE HOUSING LOANS INSURANCE
CORPORATION

6. The Housing Loans Insurance Corporation
7. Membership of Corporation
8. Disqualification from membership
9. Meetings of the Corporation
10. Disclosure of interest in contracts
11. Vacation of office
12. Remuneration and allowances
13. Leave of absence
14. Resignation of member
15. Managing Director
16. Insurance (Deposits) Act 1932-1973 not to apply to Corporation

PART III-POWERS AND DUTIES OF THE CORPORATION

17. Corporation to carry on certain insurance business
18. Powers of Corporation
19. Powers of Corporation in relation to transferred securities
20. Limitations in respect of contracts of insurance
21. (Repealed)
22. Corporation not to insure loan for acquiring land and constructing
dwelling-house unless construction has commenced
23. Corporation may require to be satisfied as to standard of
construction
24. Corporation may make payment under contract notwithstanding lender
has not fully exercised his rights in certain cases
25. Policies of Corporation in the conduct of its business
26. Premiums, &c., to be charged by Corporation
27. Corporation not obliged to enter into contract in respect of
particular loan

PART IV-STAFF

28. Officers and employees
29. Terms and conditions of employment

PART V-FINANCE

30. Corporation guaranteed by Commonwealth
31. Advances to the Corporation
32. Bank accounts
33. Application of moneys
34. Investments
35. Transfer of surplus to reserve
36. Proper accounts to be kept
37. Audit
38. Liability to taxation

PART VI-REPORTS AND RETURNS

39. Annual report of the Corporation
40. Quarterly return of contracts

PART VII-MISCELLANEOUS

41. Validity of insurance contracts
42. Assignment of contracts of insurance
43. Secrecy
44. False statements
45. Officers' rights
46. (Repealed)
47. Regulations

THE SCHEDULE

Oath or Affirmation of Secrecy

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 1.
Short title.

SECT

HOUSING LOANS INSURANCE ACT 1965-1973
An Act to make provision with respect to Insurance against Losses arising out of the making of Loans for the purpose of financing Housing.

PART I-PRELIMINARY
Short title amended; No. 32, 1918, s. 2.
1. This Act may be cited as the Housing Loans Insurance Act 1965-1973.*

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 2.
Commencement.

SECT

2. This Act shall come into operation on the day on which it receives the Royal Assent.*
Section 3 repealed by No. 216, 1973, s. 3.
* * * * * * * *

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 4.
Interpretation.

SECT

Sub-section (1) amended by No. 216, 1973, s. 3.
4. (1) In this Act, unless the contrary intention appears-

''appraised value'' means the value determined by the Corporation for the purposes of this Act;

''approved bank'' means the Reserve Bank of Australia or a bank approved by the Treasurer for the purposes of the provision in which the expression occurs;

''approved lender'' means a person approved by the Corporation under the next succeeding section but, except in relation to a loan referred to in sub-section (4) of that section, does not include a person whose approval under that section has been revoked;

''approved security'' means a first legal mortgage or a mortgage that will, upon registration under a law of a State or Territory, constitute a first legal mortgage and, in relation to such prescribed interests and for the purposes of such classes of loans as the regulations specify in respect of a particular kind of security, includes a security of that kind;

''contract of insurance'' means a contract of insurance under this Act;

''dwelling-house'' includes-

(a) any building that consists, or any buildings that consist, in whole or in substantial part, of residential accommodation, whether constituting a single unit of accommodation or two or more such units; and

(b) any residential accommodation of a kind commonly known as a flat or home unit;

''insurable loan'' means a loan (not being a loan made by the Commonwealth or a State, or by an authority of the Commonwealth or a State other than a bank)-

(a) made for any one or more of the following purposes, that is to say, of enabling the borrower-

(i) to acquire a prescribed interest in land and construct, or complete the construction of, a dwelling-house on the land;

(ii) to construct a dwelling-house, or complete the construction of a dwelling-house, on land in which the borrower has a prescribed interest;

(iii) to acquire a prescribed interest in land on which there is a dwelling-house;

(iv) to alter, improve or extend a dwelling-house constructed on land in which the borrower has a prescribed interest;

(v) to meet expenses in respect of the provision or improvement of roads, kerbing, guttering or footpaths in connexion with land in which the borrower has a prescribed interest; or

(vi) to discharge a mortgage, charge or other encumbrance over land in which the borrower has a prescribed interest, being land on which there is a dwelling-house or on which a dwelling-house is being constructed; and

(b) the repayment of which is secured by an approved security over the interest of the borrower in the land,

and, where the lender requires the borrower to meet the cost of the premium in respect of a contract of insurance entered into in respect of the loan, includes moneys advanced by the lender to enable the borrower to meet that cost, being moneys the repayment of which is secured by the approved security;

''lender'', in relation to an insurable loan, includes any person having the right to receive repayment of the loan;

''member'' means a member of the Corporation and includes the Chairman and the Deputy Chairman;

''mortgage'', in relation to an interest as lessee, includes a mortgage by way of sub-lease or assignment of lease;

''part-time member'' means a member referred to in paragraph (c) of sub-section (1) of section seven of this Act;

''prescribed interest'', in relation to land, means-

(a) an estate in fee simple;

(b) an interest as lessee under a lease in perpetuity from the Crown in right of the Commonwealth or a State, including a suburban holding under the Crown Lands Consolidation Act, 1913 of the State of New South Wales, or under that Act as amended at any time or under an Act enacted in substitution for that Act, being a suburban holding an application for which has been confirmed in accordance with the law of that State;

(c) an interest as lessee under a lease for a term of years from the Crown in right of the Commonwealth or a State or from the owner of an estate in fee simple if the Corporation is statisfied that the term, covenants and conditions of the lease give reasonable security of tenure to the lessee for a substantial period; or

(d) any other interest declared by the regulations to be a prescribed interest for the purposes of this Act;

''the Auditor-General'' means the Auditor-General for the Commonwealth;

''the Chairman'' means the Chairman of the Corporation;

''the Corporation'' means the Housing Loans Insurance Corporation established by this Act;

''the Deputy Chairman'' means the Deputy Chairman of the Corporation;

''the Managing Director'' means the Managing Director of the Corporation.

(2) A reference in this Act to a dwelling-house shall be read as including a reference to appurtenances, outbuildings, fences and permanent provision for lighting, water-supply, drainage and sewerage provided in connexion with the dwelling-house.

(3) A reference in this Act to the rights of a person under a security shall be read as including a reference to the right of that person to payment of the moneys secured by the security.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 5.
Approved lenders.

SECT

5. (1) The Minister may, by instrument in writing, declare a class of persons specified in the instrument to be an approved class of lenders for the purposes of this Act.

(2) The Corporation may, by instrument in writing, approve a person, being a person included in an approved class of lenders, as a lender for the purposes of this Act.

(3) The Corporation shall cause notice of the approval, or the revocation of the approval, of a person as a lender under this section to be published in the Gazette.

(4) Notwithstanding the revocation of the approval of a person under sub-section (2) of this section, that person shall continue to be an approved lender for the purposes of this Act in relation to any loan that is the subject of a contract of insurance entered into by the Corporation before the revocation of the approval, being a loan the right to receive the repayment of which is, at the time when the revocation is effected, vested in that person.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 6.
The Housing Loans Insurance Corporation.

SECT

PART II-ESTABLISHMENT OF THE HOUSING LOANS INSURANCE CORPORATION
6. (1) For the purposes of this Act, there is hereby established a body by the name of the Housing Loans Insurance Corporation.

(2) The Corporation-

(a) is a body corporate, with perpetual succession;

(b) shall have a common seal;

(c) may acquire, hold and dispose of real and personal property; and

(d) may sue and be sued in its corporate name.

(3) All courts, judges and persons acting judicially shall take judicial notice of the common seal of the Corporation affixed to a document and shall presume that it was duly affixed.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 7.
Membership of Corporation.

SECT

7. (1) The Corporation shall consist of five members, namely:-

(a) a Chairman;

(b) a Deputy Chairman; and

(c) three other members.

(2) The members shall be appointed by the Governor-General.

(3) The members referred to in paragraph (c) of sub-section (1) of this section shall be appointed as part-time members.

(4) The appointment of a person as a member takes effect on such date as is specified in the instrument of appointment.

(5) One of the members shall be a person who has had experience in banking carried on by an instrumentality of the Commonwealth.

(6) Subject to this Act, the Chairman and the Deputy Chairman hold office for such respective periods, not exceeding seven years, as are fixed by the Governor-General at the time of their appointments, but are eligible for re-appointment.

(7) A person who has attained the age of sixty-five years shall not be appointed as Chairman or Deputy Chairman.

(8) Subject to this Act, a part-time member holds office for such period, not exceeding three years, as is fixed by the Governor-General at the time of his appointment, but is eligible for re-appointment.

(9) A person shall not be appointed as a member for a period that extends beyond the date on which he will attain the age of seventy years.
Sub-section (10) omitted by No. 216, 1973, s. 3.
* * * * * * * *

(11) The exercise of a power or the performance of a function by the Corporation is not invalidated by reason only of there being a vacancy or vacancies in the membership of the Corporation.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 8.
Disqualification from membership.

SECT

8. (1) Subject to the next succeeding sub-section, a person is not capable of becoming a member while he-

(a) carries on;

(b) is an employee of a person who carries on; or

(c) is a director, officer or employee of a company or other corporation that carries on,
the business of lending money for the purpose of financing the erection, purchase or improvement of homes or the discharge of mortgages on homes.

(2) A person is not incapable of becoming a member by reason only of his being an officer of the Reserve Bank Service, being the Service constituted under Part VII of the Reserve Bank Act 1959.

(3) A person is not capable of becoming a part-time member while he is an officer of the Public Service of the Commonwealth.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 9.
Meetings of the Corporation.

SECT

9. (1) Subject to this section, the Corporation shall meet at such times and places as the Chairman thinks necessary for the efficient conduct of the affairs of the Corporation.

(2) The Chairman shall, upon the request in writing of not less than two members, convene a meeting of the Corporation.

(3) The Minister may at any time convene a meeting of the Corporation.

(4) The Chairman shall preside at all meetings of the Corporation at which he is present, and, in the absence of the Chairman, the Deputy Chairman, if he is present, shall preside.

(5) In the absence of both the Chairman and the Deputy Chairman from a meeting, the members present shall appoint a member to preside at that meeting.

(6) At a meeting of the Corporation, three members constitute a quorum.

(7) Questions arising at a meeting of the Corporation shall be decided by a majority of the votes of the members present and voting.

(8) The member presiding at a meeting of the Corporation has a deliberative vote and, in the event of an equality of votes, also has a casting vote.

(9) The Corporation shall keep a record of its proceedings.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 10.
Disclosure of interest in contracts.

SECT

10. (1) A member of the Corporation who is directly or indirectly interested in a contract made or proposed to be made by the Corporation, otherwise than as a member, and in common with the other members, of an incorporated company consisting of not less than twenty-five persons, shall, as soon as possible after the relevant facts have come to his knowledge, disclose the nature of his interest at a meeting of the Corporation.

(2) A disclosure under the last preceding sub-section shall be recorded in the records of the Corporation.

(3) After a member has, in pursuance of this section, disclosed the nature of his interest in a contract, the member-

(a) shall not take part in any deliberation or decision of the Corporation with respect to that contract; and

(b) shall be disregarded for the purposes of constituting a quorum of the Corporation for any such deliberation or decision.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 11.
Vacation of office.

SECT

11. (1) The Governor-General may remove a member from office for misbehaviour or incapacity.

(2) If-

(a) a member-

(i) becomes a person who, by reason of sub-section (1) of section eight of this Act, would not be capable of becoming a member; or

(ii) becomes bankrupt, applies to take the benefit of any law for the relief of bankrupt or insolvent debtors, compounds with his creditors or makes an assignment of any moneys payable to him under this Act for the benefit of his creditors;

(b) the Chairman or the Deputy Chairman-

(i) engages in any paid employment outside the duties of his office without the approval of the Minister; or

(ii) is absent from duty, except on leave of absence granted by the Minister, for a period of fourteen consecutive days or for twenty-eight days in any period of twelve months; or

(c) a part-time member-

(i) becomes a person who, by reason of sub-section (3) of section eight of this Act, would not be capable of becoming a part-time member; or

(ii) is absent, except on leave of absence granted by the Minister, from three consecutive meetings of the Corporation,
the Governor-General shall remove him from office.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 12.
Remuneration and allowances.

SECT

12. A member shall be paid such remuneration and allowances as the Governor-General determines.*

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 13.
Leave of absence.

SECT

13. The Minister may grant leave of absence to a member upon such terms and conditions as to remuneration or otherwise as the Minister determines.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 14.
Resignation of member.

SECT

14. A member may resign his office by writing under his hand addressed to the Governor-General.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 15.
Managing Director.

SECT

15. (1) Subject to this Act and to the directions of the Corporation, the business of the Corporation shall be managed by a Managing Director.

(2) The Chairman shall, by virtue of his office, be the Managing Director.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 16.
Insurance (Deposits) Act 1932-1973 not to apply to Corporation.

SECT

Amended by No. 216, 1973, s. 3.
16. The Insurance (Deposits) Act 1932-1973, to the extent to which it requires deposits with the Treasurer, does not apply to the Corporation.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 17.
Corporation to carry on certain insurance business.

SECT

PART III-POWERS AND DUTIES OF THE CORPORATION
17. (1) The Corporation shall carry on the business of insurance as provided by this Act.

(2) Subject to this Act, the Corporation is empowered to enter into a contract of insurance insuring an approved lender against the whole, or against any part, of any loss in respect of an insurable loan made, or proposed to be made, by that lender.

(3) The loss in respect of which an approved lender may be insured under a contract of insurance entered into by the Corporation includes-

(a) loss of moneys constituting the loan;

(b) loss of interest and other charges on or in relation to the loan; and

(c) any other loss arising from any default in relation to the loan.

(4) Subject to this Act, the terms and conditions to be included in contracts of insurance to be entered into by the Corporation shall be such as are determined by the Corporation.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 18.
Powers of Corporation.

SECT

18. The Corporation has power to do all things necessary or convenient to be done for or in connexion with, or as incidental to, the carrying on of its business.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 19.
Powers of Corporation in relation to transferred securities.

SECT

19. (1) Where an approved security is transferred or assigned to, or becomes vested in, the Corporation in consequence of the making of a payment by the Corporation under a contract of insurance, the Corporation is empowered-

(a) to dispose of its rights under the security; or

(b) if it is satisfied that in all the circumstances it is desirable to do so, to enter into an arrangement-

(i) for the variation of any of the provisions of the security; or

(ii) for the discharge of the security upon condition that a new security, containing such terms and conditions as the Corporation determines, is executed in favour of the Corporation for the amount of the loan and interest and other moneys then outstanding under the existing security.

(2) The Corporation is empowered to dispose of its rights under a security the provisions of which have been varied in pursuance of an arrangement entered into under the last preceding sub-section or under a new security executed in pursuance of such an arrangement.

(3) Where a security collateral to an approved security is transferred or assigned to, or becomes vested in, the Corporation in consequence of the making of a payment by the Corporation under a contract of insurance, the Corporation is empowered to dispose of its rights under that security or, subject to any arrangement entered into under this section, to realize that security.

(4) The powers of the Corporation under this section-

(a) are in addition to any other powers or rights the Corporation has in relation to a security; and

(b) may be exercised at any time.

(5) Where, in pursuance of sub-section (1) or (2) of this section, the Corporation disposes of its rights under a security to a person, the Corporation is empowered-

(a) if that person is an approved lender-to enter into a contract of insurance under section seventeen of this Act with that person in respect of so much of the loan secured by the security as is then outstanding as if that amount were the amount of an insurable loan made, or proposed to be made, by that lender; or

(b) if that person is not an approved lender but has entered into an approved agency contract of the kind referred to in paragraph (a) of sub-section (2) of section forty-two of this Act in relation to the loan-to enter into a contract of insurance under section seventeen of this Act with that person in respect of so much of the loan secured by the security as is then outstanding as if that amount were the amount of an insurable loan made, or proposed to be made, by that person and that person were an approved lender, provided that the contract of insurance contains a provision empowering the Corporation to cancel the contract if, at any time when the rights under the contract are vested in that person, there is not in force such an approved agency contract.

(6) In determining for the purposes of the last preceding sub-section whether a contract is an approved agency contract of the kind referred to in paragraph (a) of sub-section (2) of section forty-two of this Act, the reference in that paragraph to an instrument in force at the time when the assignment takes effect shall be read as if it were a reference to an instrument in force at the time when the Corporation disposed of its rights under the relevant security.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 20.
Limitations in respect of contracts of insurance.

SECT

20. (1) For the purposes of this section, the regulations may prescribe classes of insurable loans.

(2) The Minister may, from time to time, direct the Corporation not to enter into contracts of insurance, until the Minister otherwise directs, except in respect of such of the prescribed classes of insurable loans as the Minister specifies, and the Corporation shall comply with that direction.

(3) The Corporation shall not enter into a contract of insurance in respect of an insurable loan-

(a) the amount of which (excluding any amount advanced by the lender to enable the borrower to meet the cost of the insurance premium) exceeds-

(i) the amount determined by the Corporation, with the concurrence of the Minister, as the maximum insurable amount in respect of loans of the class in which the loan is included; or

(ii) such part of the appraised value of the land and improvements to which the approved security in respect of the loan relates as is ascertained in the manner, if any, determined by the Corporation, with the concurrence of the Minister, in respect of loans of the class in which the loan is included;

(b) the rate of interest payable in respect of which exceeds the rate of interest determined by the Corporation, with the concurrence of the Minister, as the maximum permissible rate of interest in respect of loans of the class in which the loan is included; or

(c) the period for repayment of which exceeds the period determined by the Corporation, with the concurrence of the Minister, as the maximum permissible period for repayment in respect of loans of the class in which the loan is included.

(4) The Corporation shall not enter into a contract of insurance in relation to an insurable loan the amount of which (excluding any amount advanced by the lender to enable the borrower to meet the cost of the insurance premium), when added to the aggregate of the unrepaid amounts of any existing loans (excluding, in the case of an insured loan, so much of the unrepaid amount as, in the opinion of the Corporation, represents an amount advanced to enable the borrower to meet the cost of the insurance premium), being loans secured by securities that relate to the whole or any part of the land and improvements to which the approved security in respect of the insurable loan relates, exceeds ninety-five per centum of the appraised value of that land and those improvements.

(5) Subject to the next succeeding sub-section, for the purposes of this section the rate of interest payable in respect of an insurable loan is-

(a) where only one rate of interest is specified in the approved security by which the loan is, or is proposed to be, secured-that rate of interest;

(b) where the approved security makes provision for a specified rate of interest to be reduced on condition that payments of interest, or of capital and interest, are made by a particular date or within a particular time or on conditions that include such a condition-the reduced rate of interest;

(c) where the approved security makes provision for a specified rate of interest to be increased where payments of interest, or of capital and interest, are not made by a particular date or within a particular time or where any other covenant, condition or provision of the security is not performed, observed or complied with-the lower rate of interest; or

(d) in any other case-such rate of interest as, in the opinion of the Corporation, is the rate of interest that may properly be regarded as being included in the payments provided for by the approved security.

(6) For the purposes of this section, the Corporation may-

(a) where it is satisfied that the rate of interest ascertained in accordance with the last preceding sub-section has been so fixed as to provide for the payment by the borrower of the cost of insuring his life-treat that rate of interest as being reduced by the amount by which, in the opinion of the Corporation, it would have been reduced if no life insurance had been provided for; and

(b) where the security provides both for the payment of interest and for the periodic payment of amounts that, in the opinion of the Corporation, are in respect of expenses of the lender in relation to the loan-treat the rate of interest ascertained in accordance with the last preceding sub-section as being increased by the amount by which, in the opinion of the Corporation, it would have been increased if the rate of interest provided for by the security had been so fixed as to include the periodic payments in respect of those expenses.
Section 21 repealed by No. 216, 1973, s. 3.
* * * * * * * *

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 22.
Corporation not to insure loan for acquiring land and constructing dwelling-
house unless construction has commenced.

SECT

22. The Corporation shall not enter into a contract of insurance in respect of an insurable loan made for the purpose of enabling the borrower to acquire a prescribed interest in land and construct, or complete the construction of, a dwelling-house on the land, or for purposes including that purpose, unless it is satisfied that construction of the dwelling-house has commenced or the completion of the construction of the dwelling-house is being proceeded with, as the case requires.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 23.
Corporation may require to be satisfied as to standard of construction.

SECT

23. The Corporation may decline to enter into a contract of insurance in respect of an insurable loan if it is not satisfied that the dwelling-house to which the loan relates has been constructed, or will be constructed, as the case requires, in accordance with sound standards of construction or, in the case of a loan made for the purpose of altering, improving or extending a dwelling-house, or for purposes including that purpose, that the alterations, improvements or extensions will be carried out in accordance with sound standards of construction.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 24.
Corporation may make payment under contract not withstanding lender has not
fully exercised his rights in certain cases.

SECT

24. (1) A contract of insurance may include provision for the making of a payment by the Corporation under the contract notwithstanding that the lender insured by the contract has not exercised-

(a) any rights he has against the borrower or another person personally, whether by virtue of an express or implied covenant or agreement to repay the loan and other moneys secured by the approved security by which the loan is secured, or otherwise; or

(b) any rights he has under a security collateral to the approved security.

(2) A contract of insurance may include provision for the making of a payment by the Corporation under the contract where the lender has not exercised any of his rights under the approved security if it is a condition of the making of the payment that the approved security and the rights of the lender under that security and under or in respect of any security collateral to that security are transferred or assigned to the Corporation.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 25.
Policies of Corporation in the conduct of its business.

SECT

25. (1) Subject to this Act, the Corporation may adopt such policy as it determines with respect to any matter related to the conduct of its business.

(2) Where the Corporation adopts any policy, including an altered policy, the Corporation shall inform the Minister of the policy it has adopted.

(3) Before adopting a policy, including an altered policy, with respect to a matter declared by the regulations to be a reserved matter for the purposes of this section, or continuing to pursue a policy with respect to a matter that is so declared, the Corporation shall submit the proposed policy for the approval of the Minister, and shall not adopt, or continue to pursue, the policy without the approval of the Minister, or, except during such time as the Minister permits, continue to pursue the policy where the Minister, having approved the policy, subsequently withdraws his approval.

(4) If the Corporation fails to obtain the Minister's approval to the adoption or continuation of a policy with respect to a matter to which the last preceding sub-section applies, or the Minister withdraws his approval of such a policy, the Corporation shall endeavour to reach agreement with the Minister as to the policy to be adopted by the Corporation with respect to that matter and, in the event of agreement not being reached within a time which the Minister considers reasonable, the Minister may, by writing under his hand, determine a policy to be adopted by the Corporation with respect to that matter, and the Corporation shall adopt that policy.

(5) Nothing in this section requires the approval of the Minister to the entering by the Corporation into a particular contract of insurance or empowers the Minister to determine that the Corporation shall or shall not enter into a particular contract of insurance, but the Corporation shall not enter into a particular contract of insurance if it would be contrary to a policy approved or determined by the Minister under this section to enter into that contract.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 26.
Premiums, &c., to be charged by Corporation.

SECT

26. (1) The Corporation shall charge a premium in respect of each contract of insurance entered into by the Corporation and may make charges for other matters in connexion with its business.

(2) The premiums and other charges shall be as determined by the Corporation.

(3) The Corporation shall pursue a policy directed towards securing revenue sufficient to meet all its expenditure properly chargeable to revenue.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 27.
Corporation not obliged to enter into contract in respect of particular loan.

SECT


27. Nothing in this Act obliges the Corporation to enter into a contract of insurance in respect of any particular loan.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 28.
Officers and employees.

SECT

PART IV-STAFF
28. The Corporation may appoint such officers and engage such employees as it thinks necessary for the purposes of this Act.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 29.
Terms and conditions of employment.

SECT

29. (1) The terms and conditions of employment of persons appointed or engaged under the last preceding section shall be such as are, subject to the next succeeding sub-section, determined by the Corporation, with the approval of the Public Service Board.
Amended by No. 93, 1966, s. 3.

(2) Salary is not payable to a person appointed or engaged under the last preceding section at a rate that exceeds-

(a) the rate of Seven thousand five hundred dollars per annum; or

(b) such higher rate as is prescribed,
unless the Minister has approved the rate of that salary and the other terms and conditions of employment applicable to the person.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 30.
Corporation guaranteed by Commonwealth.

SECT

PART V-FINANCE
30. The Commonwealth is responsible for the payment of all moneys due by the Corporation, but nothing in this section authorizes a creditor or other person claiming against the Corporation to sue the Commonwealth in respect of his claim.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 31.
Advances to the Corporation.

SECT

31. (1) The Treasurer shall advance to the Corporation out of the Consolidated Revenue Fund, which is appropriated accordingly, the amount of One hundred thousand pounds.

(2) The Corporation may at any time repay the whole or a part of the amount so advanced.

(3) Interest is payable by the Corporation on so much of the amount so advanced as has not been repaid at such rate as the Treasurer determines.

(4) The Treasurer may, out of moneys appropriated by the Parliament for the purposes of this Act, make additional advances to the Corporation of such amounts, and upon such terms and conditions with respect to repayment, payment of interest and otherwise, as the Treasurer determines.

(5) Except with the approval of the Treasurer, the Corporation shall not borrow otherwise than in accordance with this section.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 32.
Bank accounts.

SECT

32. (1) The Corporation may open and maintain an account or accounts with an approved bank or approved banks and shall maintain at all times at least one such account.

(2) The Corporation shall pay all moneys of the Corporation into an account referred to in this section.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 33.
Application of moneys.

SECT

33. Subject to the next succeeding section, the moneys of the Corporation shall be applied only-

(a) in payment or discharge of the expenses, charges and obligations incurred or undertaken by the Corporation in the exercise of its powers and functions under this Act or in making any other payment authorized by this Act to be made by the Corporation; and

(b) in payment of the remuneration and allowances of the members.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 34.
Investments.

SECT

34. Moneys of the Corporation not immediately required for the purposes of the Corporation may be invested-

(a) on fixed deposit with an approved bank;

(b) in securities of the Commonwealth; or

(c) subject to such conditions, if any, as the Treasurer determines by instrument under his hand-by way of loan to a person for the time being approved by the Treasurer upon the security of securities of the Commonwealth.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 35.
Transfer of surplus to reserve.

SECT

35. Where, in any year, the revenue of the Corporation is more than sufficient to meet the expenditure of the Corporation properly chargeable to revenue of that year, the Corporation shall transfer the amount of the excess to a reserve for future or contingent liabilities.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 36.
Proper accounts to be kept.

SECT

36. The Corporation shall keep proper accounts and records in accordance with the accounting principles generally applied in commercial practice and shall do all things necessary to ensure that all payments out of its moneys are properly authorized and correctly made and that adequate control is maintained over its assets and the incurring by it of liabilities.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 37.
Audit.

SECT

37. (1) The Auditor-General shall inspect and audit the accounts and records of financial transactions of the Corporation and shall forthwith draw the Minister's attention to any irregularity revealed by the inspection and audit that, in the opinion of the Auditor-General, is of sufficient importance to justify his so doing.

(2) The Auditor-General shall, at least once in each year, report to the Minister the results of the inspection and audit carried out under the last preceding sub-section.

(3) The Auditor-General or an officer of the Public Service of the Commonwealth authorized by him is entitled at all reasonable times to full and free access to all accounts, records, documents and papers of the Corporation relating directly or indirectly to the receipt or payment of moneys by the Corporation or to the acquisition, receipt, custody or disposal of assets of the Corporation.

(4) The Auditor-General or an officer of the Public Service of the Commonwealth authorized by him may make copies of, or take extracts from, any such accounts, records, documents or papers.

(5) The Auditor-General or an officer of the Public Service of the Commonwealth authorized by him may require the Chairman, the Deputy Chairman or an officer or employee of the Corporation to furnish him with such information in the possession of the Chairman, the Deputy Chairman, officer or employee, or to which he has access, as the Auditor-General or authorized officer considers necessary for the purposes of an inspection or audit under this Act, and the Chairman, the Deputy Chairman, officer or employee shall comply with the requirement.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 38.
Liability to taxation.

SECT

Sub-section (1) amended by No. 216, 1973, s. 3.
38. (1) Subject to this section, the Corporation is subject to taxation (other than taxes on income) under the laws of the Commonwealth, but is not subject to taxation under a law of a State or of a Territory.
Amended by No. 216, 1973, s. 3.

(2) Stamp duty under the law of a State or of a Territory is not payable by the Corporation or in respect of a contract of insurance executed by or on behalf of the Corporation or the transfer or assignment of a security to the Corporation.

(3) Nothing in this section prevents the payment by the Corporation of so much of any rates or taxes in respect of any land as, in the opinion of the Corporation, may fairly be regarded as being in respect of services or facilities provided in relation to that land or for the benefit of land including that land.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 39.
Annual report of the Corporation.

SECT

PART VI-REPORTS AND RETURNS
39. (1) The Corporation shall, as soon as practicable after each thirtieth day of June, furnish to the Minister a report of its operations during the year ended on that date, together with financial statements in respect of that year in such form as the Treasurer approves.

(2) Before furnishing the financial statements to the Minister, the Corporation shall submit them to the Auditor-General, who shall report to the Minister-

(a) whether the statements are based on proper accounts and records;

(b) whether the statements are in agreement with the accounts and records and show fairly the financial operations and the state of the affairs of the Corporation;

(c) whether the receipt, expenditure and investment of moneys, and the acquisition and disposal of assets, by the Corporation during the year have been in accordance with this Act; and

(d) as to such other matters arising out of the statements as the Auditor-General considers should be reported to the Minister.

(3) The Minister shall lay the report and financial statements of the Corporation, together with the report of the Auditor-General, before each House of the Parliament within fifteen sitting days of that House after their receipt by the Minister.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 40.
Quarterly return of contracts.

SECT

40. The Corporation shall, as soon as practicable after each period of three months ending on the thirty-first day of March, the thirtieth day of June, the thirtieth day of September or the thirty-first day of December, furnish to the Minister a return in accordance with a form approved by the Minister with respect to-

(a) contracts of insurance entered into by the Corporation in that period of three months; and

(b) contracts of insurance entered into by the Corporation and not discharged before the end of that period of three months.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 41.
Validity of insurance contracts.

SECT

PART VII-MISCELLANEOUS
Amended by No. 216, 1973, s. 3.
41. A contract of insurance entered into by the Corporation is not invalidated by reason of-

(a) any failure of the Corporation to comply with or observe a provision of this Act or of the regulations or a direction of the Minister; or

(b) the contract not being within the limits of the powers of the Corporation under this Act,
and all acts and things done by the Corporation in relation to the contract or in exercise of its rights and powers under the contract (including the transfer or assignment of a security and the exercise of rights and powers under or in relation to a security) are as valid as if the provisions of this Act and the regulations and the directions of the Minister had been complied with and observed and the Corporation had not exceeded the limits of its powers.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 42.
Assignment of contracts of insurance.

SECT

42. (1) Subject to this section, a contract of insurance may be assigned,in such manner as is prescribed, to a person to whom the approved security relating to the loan in respect of which the contract was entered into is transferred or assigned or in whom that security becomes vested.

(2) A contract of insurance that is assigned to a person who is not an approved lender may be cancelled by the Corporation-

(a) if, at the time when the assignment takes effect, there is not in force in relation to the loan in respect of which the contract of insurance was entered into an approved agency contract, that is to say, a contract, in accordance with a form approved by the Corporation, that makes provision for the doing by an approved lender, as agent for the person to whom the approved security relating to the loan has been transferred or assigned or in whom that security has become vested, of such things in relation to the loan and the security as the Corporation has specified by instrument published in the Gazette, being an instrument in force at the time when the assignment takes effect; or

(b) if, at any time after the assignment takes effect, there is not in force such an approved agency contract.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 43.
Secrecy.

SECT

Sub-section (1) amended by No. 93, 1966, s. 3.
43. (1) A person who, in the course of his duty or employment under or in connexion with this Act as a member of the Corporation, the Managing Director or an officer or employee of the Corporation, has acquired, or has access to, information relating to the affairs of a person shall not, except in the course of his duty in connexion with this Act, communicate that information, or make it available, to another person.

Penalty: Five hundred dollars or imprisonment for twelve months.

(2) A person referred to in the last preceding sub-section shall, before entering on the performance of his duties, make and subscribe, before a person authorized under the law of the Commonwealth or a State to take affidavits, an oath or affirmation of secrecy in accordance with the form in the Schedule to this Act.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 44.
False statements.

SECT

44. (1) A person who wilfully makes a false or misleading statement in or in connexion with an application or proposal for insurance under this Act or a claim under a contract of insurance under this Act is guilty of an offence.

(2) An offence against this section may be prosecuted either summarily or on indictment.
Amended by No. 93, 1966, s. 3.

(3) The penalty for an offence against this section is-

(a) if the offence is prosecuted summarily-a fine not exceeding Two hundred dollars; or

(b) if the offence is prosecuted on indictment-imprisonment for a term not exceeding two years.

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 45.
Officers' rights.

SECT

Amended by No. 216, 1973, s. 3.
45. Where the Chairman, the Deputy Chairman or an officer of the Corporation was, immediately before his appointment took effect, an officer of the Public Service of the Commonwealth-

(a) he retains his existing and accruing rights; and

(b) for the purpose of determining those rights, his service under this Act shall be taken into account as if it were service in the Public Service of the Commonwealth.
Section 46 repealed by No. 216, 1973, s. 3.
* * * * * * * *

HOUSING LOANS INSURANCE ACT 1965-1973 - SECT. 47.
Regulations.

SECT

Sub-section (1) amended by No. 93, 1966, s. 3.
47. (1) 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, and, in particular, for prescribing penalties not exceeding a fine of One hundred dollars or imprisonment for a period not exceeding three months, or both, for offences against the regulations.

(2) After the Corporation commences to carry on business, regulations-

(a) prescribing securities to be approved securities for the purposes of this Act;

(b) declaring interests in land to be prescribed interests for the purposes of this Act; or

(c) prescribing classes of insurable loans for the purposes of section twenty of this Act,
or any regulations amending or repealing any such regulations, shall not be made unless the regulations are in accordance with a recommendation made to the Minister by the Corporation.

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HOUSING LOANS INSURANCE ACT 1965-1973 - THE SCHEDULE

SCH


THE SCHEDULE
Section 43

OATH OR AFFIRMATION OF SECRECY

I, , do swear by Almighty God (or do solemnly and sincerely affirm and declare) that I will not, except in the course of my duty in connexion with the Housing Loans Insurance Act 1965, communicate or make available to another person any information relating to the affairs of a person coming to my knowledge, or to which I have access, in the course of my duty (or employment) under that Act.
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HOUSING LOANS INSURANCE ACT 1965-1973 - NOTES


NOTES
1. The Housing Loans Insurance Act 1965-1973 comprises the Housing Loans Insurance Act 1965 as amended by the other Acts specified in the following table:
----------------------------------------------------------------------------

Number Date of
Act and year Date of
Assent commencement
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Housing Loans Insurance
Act 1965 No. 10, 1965 4 May 1965 4 May 1965
Statute Law Revision
(Decimal Currency) Act
1966 No. 93, 1966 29 Oct 1966 1 Dec 1966
Statute Law Revision Act
1973 No. 216, 1973 19 Dec 1973 31 Dec 1973 ------------------------------------------------------------------------------ --
2.-S. 12-By section 15 of, and Schedule 4 to, the Remuneration and Allowances Acts 1973, the rate per annum of the salary applicable to the office of Chairman of the Housing Loans Insurance Corporation is $20,810 and that of Deputy Chairman $15,385 with an annual allowance applicable to the office of Chairman of $1,000.