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Housing Loans Insurance Act 1965

Act No. 10 of 1965 as amended, taking into account amendments up to Act No. 36 of 1978
Registered 26 Nov 2009
Start Date 12 Jun 1978
End Date 20 Sep 1983
Date of repeal 13 Jun 1998
Repealed by Housing Loans Insurance Corporation (Transfer of Assets and Abolition) Act 1996

HOUSING LOANS INSURANCE ACT 1965 - Incorporating all amendments by legislation
made to 30 June 1980
- Reprinted as at 30 June 1980 (HISTACT CHAP 374 #DATE 30:06:1980)

*1* The Housing Loans Insurance Act 1965 (a) as shown in this reprint comprises
Act No. 10, 1965 as amended by the other Acts specified in the following table:
---------------------------------------------------------------------------- Act Number
and year Date
of Assent Date
of commencement
----------------------------------------------------------------------------
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
Housing Loans Insurance
Amendment Act 1977 No. 39, 1977 7 June 1977 S. 21: 1 July 1977
Remainder: Royal
Assent
Administrative Changes
(Consequential
Provisions) Act 1978 No. 36, 1978 12 June 1978 12 June 1978
----------------------------------------------------------------------------
(a) This citation is provided for by the Amendments Incorporation Act 1905
and the Acts Citation Act 1976.


HOUSING LOANS INSURANCE ACT 1965 - TABLE OF PROVISIONS

TABLE

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 (Repealed)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

8A. Acting Chairman and Deputy Chairman

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 and Deputy 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

21-23. (Repealed)

24. Corporation may make payment under contract notwithstanding that the lender does not fully exercise 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. Capital of the Corporation

31A. General Reserve

31B. Payments to the Commonwealth

31C. Interim dividends

31D. Borrowing by the Corporation

32. Bank accounts

33. Application of moneys

34. Investment of moneys

35. Profits of the Corporation

36. Proper accounts to be kept

37. Estimates

37A. Contracts

37B. Audit

38. Taxation


PART VI-REPORTS AND RETURNS


39. Annual report

40. Further reports

40A. Quarterly return of contracts


PART VII-MISCELLANEOUS


41. Validity of insurance contracts

42. Assignment of contracts of insurance

43. Secrecy

44. (Repealed)

45. Officers' rights

46. (Repealed)

47. Regulations


THE SCHEDULE


Oath or Affirmation of Secrecy


HOUSING LOANS INSURANCE ACT 1965 - LONG TITLE

SECT

An Act to make provision with respect to Insurance against Losses arising out of the making of Loans for the purpose of financing Housing, and for purposes connected therewith. Title amended by No. 39, 1977, s. 3.

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

SECT

PART I-PRELIMINARY

1. This Act may be cited as the Housing Loans Insurance Act 1965.*1*


See notes to first article of this Chapter.

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

SECT

2. This Act shall come into operation on the day on which it receives the Royal Assent.*1*


Section 3 repealed by No. 216, 1973, s. 3.
* * * * * * * *

See notes to first article of this Chapter.

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

Sub-section (1) amended by No. 216, 1973, s. 3; and No. 39, 1977, ss. 4 and 27.

SECT

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

"agency contract" means a contract approved by the Corporation that makes provision for an approved lender to act-

(a) in relation to a loan in respect of which a contract of insurance is proposed to be entered into between the lender, not being an approved lender, and the Corporation-as the agent of the lender;

(b) in relation to a loan to which a contract of insurance relates, being a loan that is secured by an approved security-as the agent of a person, not being an approved lender-

(i) to whom the approved security has been or is to be transferred or assigned or in whom that security has become vested; and

(ii) to whom the contract of insurance has been, or is to be, assigned; or

(c) in relation to a loan to which a contract of insurance relates, being a loan that is not secured by an approved security-as the agent of a person, not being an approved lender-

(i) to whom the right of repayment of the loan has been, or is to be, transferred or assigned; and

(ii) to whom the contract of insurance has been, or is to be, assigned;

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

"approved bank" means a trading bank within the meaning of sub-section (1) of section 5 of the Banking Act 1959 or another 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) a first legal mortgage or a mortgage that will, upon registration under a law of a State or Territory, constitute a first legal mortgage;

(b) a mortgage registered under a law of a State or Territory and having priority subject only to a first legal mortgage or to a first legal mortgage and another mortgage or other mortgages so registered; or

(c) a mortgage that will, upon registration under a law of a State or Territory, take priority subject only to a first legal mortgage, or to a first legal mortgage and another mortgage or other mortgages that are so registered,

and includes, in relation to such prescribed interests as the regulations specify in respect of a particular kind of security, 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;

"General Reserve" means the reserve continued in existence under the name "Housing Loans Insurance Corporation General Reserve" by section 31A;

"insurable loan" means a loan-

(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;

(ii) to develop land, or complete the development of land, as residential land, being land in which the borrower has a prescribed interest;

(iii) to acquire a prescribed interest in land and to develop the land, or complete the development of the land, as residential land;

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

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

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

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

(viii) to meet expenses in respect of the provision or improvement of roads, kerbing, guttering or footpaths in connexion with the 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; or

(ix) to discharge a mortgage, charge or other encumbrance over land in which the borrower has a prescribed interest; and

(b) the repayment of which (except in the case of a loan made for the purpose of sub-paragraph (vii) or (viii) of paragraph (a) and in accordance with terms and conditions approved by the Corporation) is secured by an approved security over the interest of the borrower in the land;

"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 7;

"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 satisfied that the term, covenants and conditions of the lease give reasonable security of tenure to the lessee for a substantial period;

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

(e) any right in relation to land, not being an interest in land, that is declared by the regulations to be deemed 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 Deputy Managing Director" means the Deputy Managing Director 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.


Added by No. 39, 1977, s. 4.

SECT

(4) A reference in this Act to the development of land as residential land shall be read as a reference to-

(a) the subdivision, or re-subdivision, of the land into blocks upon which dwelling-houses can be constructed, including the carrying out of such works as are necessary or convenient to be carried out upon, or in relation to, the land for the purpose of enabling the land to be so subdivided or re-subdivided; or

(b) the carrying out, otherwise than in connexion with the subdivision or re-subdivision of the land, of such works as are necessary or convenient to be carried out upon, or in relation to, the land for the purpose of enabling the land to be used for the construction of dwelling-houses.


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

Sub-section (1) omitted by No. 39, 1977, s. 5.

SECT

5. * * * * * * * *


Amended by No. 39, 1977, s. 5.

SECT

(2) The Corporation may, by instrument in writing, approve a person 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.


Amended by No. 39, 1977, s. 27.

SECT

(4) Notwithstanding the revocation of the approval of a person under sub-section (2), 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 - 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 - 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.


Sub-section (5) omitted by No. 39, 1977, s. 6.
* * * * * * * *

SECT

(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.
* * * * * * * *

SECT

(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 - SECT. 8.
Disqualification from membership.

Sub-section (1) amended by No. 39, 1977, s. 7.

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 development of land as residential land, the erection, improvement or purchase of dwelling-houses or the discharge of mortgages over land on which dwelling-houses have been, or are being, constructed.


(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 - SECT. 8A.
Acting Chairman and Deputy Chairman.

Inserted by No. 39, 1977, s. 8.

SECT

8A. (1) Where the Chairman is absent from duty or from Australia or there is a vacancy in the office of Chairman, the Deputy Chairman shall act as Chairman and Managing Director during the absence or until the filling of the vacancy.


(2) Where the Deputy Chairman is, or is expected to be, absent from duty or from Australia or there is, or is expected to be, a vacancy in the office of Deputy Chairman, the Minister may appoint a person who is eligible for appointment as a member to act as the Deputy Chairman during the period of the absence or until the filling of the vacancy.


(3) A person acting as Deputy Chairman in pursuance of an appointment under sub-section (2) shall, while so acting, also act as the Deputy Managing Director.


(4) If the Deputy Chairman or a person acting as Deputy Chairman is, by virtue of sub-section (1), at any time acting as the Chairman, the office of Deputy Chairman shall, during the period of his so acting, be deemed, for the purposes of sub-section (2), to be vacant.


(5) A person appointed under sub-section (2) holds office on such terms and conditions as the Minister determines.


(6) The Minister may at any time terminate the appointment of a person appointed under sub-section (2).


(7) The appointment of a person appointed to act as Deputy Chairman under sub-section (2) ceases to have effect if he resigns by writing under his hand addressed to the Minister.


(8) Sections 10 and 13 apply in relation to a person appointed under sub-section (2) in like manner as they apply in relation to a member.


(9) The validity of anything done by a person appointed under sub-section (2) shall not be called into question on the ground that the occasion for his appointment had not arisen or that the appointment had ceased to have effect.


(10) A reference in sub-section (1) to the Deputy Chairman includes a reference to a person acting as the Deputy Chairman in pursuance of an appointment under sub-section (2).


HOUSING LOANS INSURANCE ACT 1965 - 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.


Added by No. 39, 1977, s. 9.

SECT

(10) In this section-

(a) a reference to the Chairman shall be read as including a reference to a person acting as the Chairman;

(b) a reference to the Deputy Chairman shall be read as including a reference to a person acting as the Deputy Chairman; and

(c) a reference to a member shall be read as including a reference to a person appointed under sub-section (2) of section 8A who is acting as the Chairman or as the Deputy Chairman.


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

Amended by No. 39, 1977, s. 27.

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 8, 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 8, 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 - SECT. 12.
Remuneration and allowances.

Substituted by No. 39, 1977, s. 10.

SECT

12. (1) A member shall be paid such remuneration as is determined by the Remuneration Tribunal.


(2) A member shall be paid such allowances as are prescribed.


(3) This section has effect subject to the Remuneration Tribunals Act 1973.


HOUSING LOANS INSURANCE ACT 1965 - 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 - 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 - SECT. 15.
Managing Director and Deputy 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.


Added by No. 39, 1977, s. 11.

SECT

(3) There shall be a Deputy Managing Director of the Corporation who shall, in accordance with the directions of the Managing Director, assist the Managing Director in the management of the business of the Corporation.


Added by No. 39, 1977, s. 11.

SECT

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


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

Amended by No. 216, 1973, s. 3.

SECT

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 - 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.


Amended by No. 39, 1977, s. 12.

SECT

(2) Subject to this Act, the Corporation is empowered to enter into a contract of insurance insuring a 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.


Inserted by No. 39, 1977, s. 12.

SECT

(2A) The Corporation shall not enter into a contract of insurance under sub-section (2) unless-

(a) the lender is an approved lender; or

(b) an agency contract is in force in relation to the loan in respect of which the contract of insurance is to be entered into.


Amended by No. 39, 1977, s. 12.

SECT

(3) The loss in respect of which a 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.


Added by No. 39, 1977, s. 12.

SECT

(5) A contract of insurance that is entered into with a lender who is not an approved lender may be cancelled by the Corporation if, at any time after the contract is entered into, an agency contract is not in force in relation to the loan to which that contract of insurance relates.


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

Sub-section (1) amended by No. 39, 1977, s. 13.

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 an amount not exceeding 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.


Substituted by No. 39, 1977, s. 13.

SECT

(5) Where, in pursuance of sub-section (1) or (2), the Corporation disposes of its rights under a security to a person, the Corporation is empowered to enter into a contract of insurance under section 17 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.


Sub-section (6) omitted by No. 39, 1977, s. 13.
* * * * * * * *

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

Substituted by No. 39, 1977, s. 14.

SECT

20. The Minister may, from time to time, by instrument in writing, direct the Corporation not to enter into contracts of insurance in respect of a class of insurable loans specified in the direction, and the Corporation shall comply with that direction.


Section 21 repealed by No. 216, 1973, s. 3; sections 22 and 23 repealed by No.
39, 1977, s. 14.
* * * * * * * *

HOUSING LOANS INSURANCE ACT 1965 - SECT. 24.
Corporation may make payment under contract notwithstanding that the lender
does not fully exercise his rights in certain cases.

Sub-section (1) amended by No. 39, 1977, s. 15.

SECT

24. (1) A contract of insurance in relation to an insurable loan that is secured by an approved security 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, or otherwise; or

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


Substituted by No. 39, 1977, s. 15.

SECT

(2) A contract of insurance in relation to an insurable loan that is secured by an approved security 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.


Added by No. 39, 1977, s. 15.

SECT

(3) The Corporation may enter into an agreement with a lender, in relation to a contract of insurance entered into before the commencement of this sub-section, for the substitution for a provision included in that contract in pursuance of sub-section (2) as in force immediately before the commencement of this sub-section of a provision of the kind authorized by sub-section (2) as subsequently in force, and such an agreement is enforceable notwithstanding the absence of any consideration for the making of the agreement.


Added by No. 39, 1977, s. 15.

SECT

(4) A contract of insurance in relation to an insurable loan that is not secured by an approved security 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 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 payable in accordance with the terms and conditions on which the loan was made, or otherwise.


Added by No. 39, 1977, s. 15.

SECT

(5) In this section, a reference to a lender who has not exercised any rights shall include a reference to a lender who has exercised some, but not all, of those rights.


HOUSING LOANS INSURANCE ACT 1965 - 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 - 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.


Substituted by No. 39, 1977, s. 16.

SECT

(3) The Corporation may refund, in circumstances relating to the cessation or reduction of the liability of the Corporation under a contract, part of the premium paid in relation to the contract.


Added by No. 39, 1977, s. 16.

SECT

(4) The Corporation shall carry out its operations as efficiently as possible and the premiums charged by the Corporation and the other charges made by it shall be at the lowest possible rates having regard to the duty imposed on the Corporation by sub-section (5).


Added by No. 39, 1977, s. 16.

SECT

(5) The Corporation shall pursue a policy directed towards securing revenue sufficient to meet all its expenditure and provision for expenditure properly chargeable to revenue, and to permit the payment to the Commonwealth, in addition to the payment of income tax, of a reasonable return on the capital of the Corporation.


HOUSING LOANS INSURANCE ACT 1965 - 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 - 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 - 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.


Sub-section (2) omitted by No. 39, 1977, s. 17.
* * * * * * * *

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

SECT

PART V-FINANCE

Amended by No. 39, 1977, s. 18.

SECT

30. The Commonwealth is responsible for the payment of all moneys due by the Corporation other than moneys due in respect of moneys borrowed under section 31D, 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 - SECT. 31.
Capital of the Corporation.

Substituted by No. 39, 1977, s. 19; amended by No. 36, 1978, s. 3.

SECT

31. The capital of the Corporation at any time is the sum of-

(a) an amount of $5,000,000 transferred to the capital account of the Corporation in pursuance of sub-section (2) of section 31A;

(b) any amounts paid to the Corporation by the Minister for Finance after the commencement of this section out of moneys appropriated by the Parliament for the purpose of providing further capital for the Corporation; and

(c) any amounts transferred from the General Reserve to the capital account of the Corporation in pursuance of directions given under sub-section (4) of section 31A,

less the sum of any amounts of capital repaid to the Commonwealth by the Corporation after the commencement of this section.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 31A.
General Reserve.

Inserted by No. 39, 1977, s. 19.

SECT

31A. (1) The reserve referred to in section 35 of the Housing Loans Insurance Act 1965 as amended and in force immediately before the date of commencement of this section continues in existence, on and after that date, by force of this section, as a general reserve under the name "Housing Loans Insurance Corporation General Reserve ".


(2) As soon as practicable after the commencement of this section, the Corporation shall-

(a) pay to the Commonwealth, out of the General Reserve, an amount of $4,500,000; and

(b) transfer to the capital account of the Corporation, out of the General Reserve, an amount of $5,000,000.


(3) There shall be transferred to the General Reserve the balance (if any) of the profits of the Corporation for a financial year after the payment by the Corporation to the Commonwealth of such amounts out of those profits as the Minister determines under sub-section (1) of section 31B.


(4) The Minister may from time to time direct the Corporation to transfer a specified amount from the General Reserve to the capital account of the Corporation, and the Corporation shall comply with such a direction.


(5) In giving a direction under sub-section (4), the Minister shall have regard to any advice that the Corporation has furnished to him in relation to the financial affairs of the Corporation.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 31B.
Payments to the Commonwealth.

Inserted by No. 39, 1977, s. 19.

SECT

31B. (1) Interest is not payable to the Commonwealth on the capital of the Corporation but the Corporation shall pay to the Commonwealth, out of the profits of the Corporation for the financial year that commenced on 1 July 1976 and for each succeeding year, such amount as the Minister determines.


(2) The capital of the Corporation is repayable to the Commonwealth at such times and in such amounts as the Minister determines.


(3) In the making of a determination under sub-section (1) or (2), regard shall be had to any advice that the Corporation has furnished to the Minister in relation to the financial affairs of the Corporation.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 31C.
Interim dividends.

Inserted by No. 39, 1977, s. 19.

SECT

31C. (1) The Corporation shall, from time to time during a financial year, pay to the Commonwealth such an amount, or such amounts, as the Minister directs on account of the amount that is expected to become payable by the Corporation in respect of that financial year in accordance with a determination of the Minister under sub-section (1) of section 31B.


(2) The Minister shall not make a direction under sub-section (1) during a financial year unless he has given the Corporation a reasonable opportunity to furnish to him particulars of its estimated profits for that financial year and any advice that the Corporation wishes to furnish to him concerning its financial affairs and has had regard to any particulars and advice so furnished to him.


(3) Where the amount, or the total of the amounts, paid by the Corporation to the Commonwealth during a financial year under sub-section (1) of this section exceeds the amount (if any) determined by the Minister under sub-section (1) of section 31B to be payable by the Corporation to the Commonwealth in respect of that year, the amount of the excess shall be treated as having been paid by the Corporation to the Commonwealth under sub-section (1) of this section during the next succeeding financial year.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 31D.
Borrowing by the Corporation.

Inserted by No. 39, 1977, s. 19.

SECT

31D. (1) The Corporation may, with the approval of the Treasurer, borrow moneys that are from time to time necessary for the exercise of its powers or the performance of its duties or functions under this Act.


Amended by No. 36, 1978, s. 3.

SECT

(2) The Minister for Finance may, on behalf of the Commonwealth, out of moneys appropriated by the Parliament for the purpose, lend to the Corporation, at such rate of interest and on such other terms and conditions as he determines, moneys that the Corporation is authorized to borrow under sub-section (1).


(3) The Corporation may give security over the whole or any part of its assets for the repayment of amounts borrowed under this section and the payment of interest on amounts so borrowed.


(4) The Treasurer may, on behalf of the Commonwealth, guarantee the repayment by the Corporation of amounts borrowed under this section otherwise than from the Commonwealth and the payment of interest on amounts so borrowed.


(5) The Corporation shall not borrow moneys except in accordance with this section.


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

Substituted by No. 39, 1977, s. 20.

SECT

33. Subject to section 34, the moneys of the Corporation shall be applied only-

(a) in payment or discharge of the costs, expenses and other obligations of the Corporation;

(b) in payment of remuneration and allowances payable to any person appointed or employed under this Act; and

(c) in making payments to the Commonwealth as provided by this Act.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 34.
Investment of moneys.

Substituted by No. 39, 1977, s. 20.

SECT

34. (1) The moneys of the Corporation not immediately required for the purposes of the Corporation may be invested-

(a) on deposit with an approved bank;

(b) in public securities within the meaning of section 42 of the Superannuation Act 1976;

(c) with the approval of the Treasurer and subject to such conditions (if any) as he determines-in a loan to (including deposit with), or in the shares of, a permanent building society;

(d) in any manner for the time being allowed by an Act, or by a law of a State or Territory, for the investment of trust moneys in Australia;

(e) in a loan to (including deposit with) a prescribed dealer in the short-term money market; or

(f) in any other manner for the time being approved by the Treasurer.


(2) In sub-section (1)-

"permanent building society" means a society registered or incorporated as a building society, co-operative housing society or similar society under the law in force in a State or Territory relating to such societies, other than a society which, under its rules, is to terminate at a specified date, on the occurrence of a specified event or on the attainment of a specified result;

"share ", in relation to a permanent building society, means a share in the capital of the society, and includes stock.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 35.
Profits of the Corporation.

Substituted by No. 39, 1977, s. 20.

SECT

35. For the purposes of this Act, the profits of the Corporation for a financial year are the amount (if any) remaining after deducting from the revenue received or receivable in respect of that financial year the expenditure and provision for expenditure properly chargeable against that revenue.


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

Substituted by No. 39, 1977, s. 20.

SECT

36. The Corporation shall cause to be kept proper accounts and records of the transactions and affairs of the Corporation 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 correctly made and properly authorized and that adequate control is maintained over the assets of, or in the custody of, the Corporation and over the incurring of liabilities by the Corporation.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 37.
Estimates.

Substituted by No. 39, 1977, s. 20.

SECT

37. The Corporation shall prepare estimates, in such form as the Minister directs, of its receipts and expenditure for each financial year, and, if so directed by the Minister, for any other period, and shall submit those estimates to the Minister not later than such date as the Minister directs.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 37A.
Contracts.

Inserted by No. 39, 1977, s. 20.

SECT

37A. The Corporation shall not, except with the approval of the Minister, enter into a contract (not being a contract entered into by the Corporation by virtue of powers conferred on it by section 17, 19 or 34) involving the payment or receipt by the Corporation of an amount exceeding $250,000, or, if a higher amount is prescribed by the regulations, that higher amount.


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

Inserted by No. 39, 1977, s. 20.

SECT

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


(2) The Auditor-General may, at his discretion, dispense with all or any part of the detailed inspection and audit of any accounts or records referred to in sub-section (1).


(3) The Auditor-General shall, at least once in each year, report to the Minister the results of the inspection and audit carried out under sub-section (1).


(4) The Auditor-General or a person 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 by the Corporation.


(5) The Auditor-General or a person authorized by him may make copies of, or take extracts from, any such accounts, records, documents or papers.


(6) The Auditor-General or a person authorized by him may require any person to furnish him with such information in the possession of the person or to which the person has access as the Auditor-General or authorized person considers necessary for the purposes of the functions of the Auditor-General under this Act, and the person shall comply with the requirement.


(7) A person who contravenes sub-section (6) is guilty of an offence punishable, upon conviction, by a fine not exceeding $200.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 38.
Taxation.

Substituted by No. 39, 1977, s. 21.

SECT

38. (1) The Corporation shall pay all rates, taxes and charges under any law of the Commonwealth, a State or a Territory.


(2) The Corporation is not a public authority for the purposes of paragraph (d) of section 23 of the Income Tax Assessment Act 1936.


(3) Securities issued by the Corporation are not public securities or Commonwealth securities for the purposes of the Income Tax Assessment Act 1936.


(4) The provisions of the Income Tax Assessment Act 1936 that relate to depreciation apply in relation to the Corporation as if-

(a) the Corporation had, at all times, been liable to pay taxes on income under the laws of the Commonwealth and depreciation had been allowed in assessments accordingly;

(b) the Corporation had not, in relation to the first year of income in respect of which it was so liable, exercised the option referred to in paragraph (b) of sub-section (1) of section 56 of that Act; and

(c) in the case of a unit of property owned by the Corporation that became so owned before 1 July 1976, the Commissioner had, for the purposes of the calculation of the first depreciation that would have been allowed in respect of that unit after the Corporation had been so liable to pay taxes on income, made such estimate of the effective life of the unit as, in the opinion of the Commissioner, would have been the appropriate estimate,

except that, for the purpose of calculating, in respect of any property of the Corporation, the sum referred to in sub-section (2) of section 59 of that Act, the Corporation shall not be treated as having been allowed any amount as depreciation that has not in fact been allowed.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 39.
Annual report.

SECT

PART VI-REPORTS AND RETURNS

Substituted by No. 39, 1977, s. 22. Sub-section (1) amended by No. 36, 1978, s. 3.

SECT

39. (1) The Corporation shall, as soon as practicable after each 30 June, prepare and furnish to the Minister, for presentation to the Parliament, 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 Minister for Finance approves.


(2) The report shall set out-

(a) all directions given by the Minister to the Corporation under section 20, sub-section (4) of section 31A or sub-section (1) of section 31C; and

(b) all determinations made by the Minister under sub-section (4) of section 25 or sub-section (1) or (2) of section 31B,

during the year to which the report relates.


(3) Before furnishing 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 transactions and the state of 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.


(4) The Minister shall cause a copy of the report and financial statements of the Corporation, together with a copy of the report of the Auditor-General, to be laid before each House of the Parliament within 15 sitting days of that House after their receipt by the Minister.


HOUSING LOANS INSURANCE ACT 1965 - SECT. 40.
Further reports.

Substituted by No. 39, 1977, s. 22.

SECT

40. (1) The Corporation shall, upon request by the Minister, furnish to the Minister such reports, documents and information concerning its operations as the Minister specifies.


(2) A request under sub-section (1) shall not require reports, documents or information to be furnished to the Minister with respect to the affairs of an individual person.


(3) The Corporation shall, at all times, keep the Minister informed concerning the operations of the Corporation.


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

Inserted by No. 39, 1977, s. 22.

SECT

40A. Where the Minister requests the Corporation to furnish to him, in respect of a period of 3 months ending on 31 March, 30 June, 30 September or 31 December, a return, in accordance with the form approved by him, with respect to-

(a) contracts of insurance entered into by the Corporation in that period of 3 months; and

(b) contracts of insurance entered into by the Corporation and not discharged before the end of that period of 3 months,

the Corporation shall comply with the request as soon as practicable after the request is made.


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

SECT

PART VII-MISCELLANEOUS

Amended by No. 216, 1973, s. 3.

SECT

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 - SECT. 42.
Assignment of contracts of insurance.

Substituted by No. 39, 1977, s. 23.

SECT

42. (1) Subject to this section, a contract of insurance may be assigned, in such manner as is prescribed-

(a) in a case where the loan to which the contract of insurance relates is secured by an approved security-to the person to whom the approved security is transferred or assigned or in whom that security becomes vested; or

(b) in a case where the loan to which the contract of insurance relates is not so secured-to the person to whom the right of repayment of the loan is transferred or assigned.


(2) A contract of insurance that is assigned to a person who is not an approved lender may be cancelled by the Corporation if at, or at any time after, the time when the assignment takes effect an agency contract is not in force in relation to the loan in respect of which the contract of insurance was entered into.


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

Sub-section (1) amended by No. 93, 1966, s. 3; and No. 39, 1977, s. 24.

SECT

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, the Deputy 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.


Amended by No. 39, 1977, s. 27.

SECT

(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.


Added by No. 39, 1977, s. 24.

SECT

(3) In sub-section (1)-

(a) a reference to a member of the Corporation shall be read as including a reference to a person appointed under sub-section (2) of section 8A who is acting as the Chairman or as the Deputy Chairman; and

(b) a reference to the Managing Director or to the Deputy Managing Director shall be read as including a reference to a person appointed under sub-section (2) of section 8A who is acting as the Managing Director or as the Deputy Managing Director, as the case may be.


Section 44 repealed by No. 39, 1977, s. 25.
* * * * * * * *

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

Amended by No. 216, 1973, s. 3.

SECT

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 - SECT. 47.
Regulations.

Sub-section (1) amended by No. 93, 1966, s. 3.

SECT

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.


Amended by No. 39, 1977, s. 26.

SECT

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

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

(b) declaring interests in land to be prescribed interests for the purposes 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 - 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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