Financial Agreements (Commonwealth Liability) Act 1932

Act No. 2 of 1932 as amended

This compilation was prepared on 23 March 2004 taking into account amendments up to Act No. 19 of 1979

The text of any of those amendments not in force on that date is appended in the Notes section

The operation of amendments that have been incorporated may be affected by application provisions that are set out in the Notes section

Prepared by the Office of Legislative Drafting, Attorney-General’s Department, Canberra

Contents

An Act to resolve doubts which have arisen as to the liability of the Commonwealth to bondholders in certain debts of the States taken over by the Commonwealth, and for other purposes

Preamble

(a) the balance then unpaid of the gross public debt of each State existing on the thirtieth day of June One thousand nine hundred and twenty-seven; and

(b) all other debts of each State existing on the first day of July One thousand nine hundred and twenty-nine for moneys borrowed by that State which by that Agreement were deemed to be moneys borrowed by the Commonwealth for and on behalf of that State;

and would in respect of debts so taken over assume as between the Commonwealth and the States the liabilities of the States to bondholders:

AND WHEREAS doubts have arisen as to the direct liability of the Commonwealth to bondholders in certain debts of the States so taken over by the Commonwealth:

AND WHEREAS it is desirable that those doubts should be resolved and that the Commonwealth should accept direct liability to those bondholders and should have the right to sue the State concerned for the amount of payments made in satisfaction of such liability:

BE it therefore enacted by the King's Most Excellent Majesty, the Senate, and the house of Representives of the Commonwealth of Australia, as follows:

WHEREAS by clause 1 of Financial Agreement Validation Act 1929 it was agreed that, subject to the provisions of that Part of the Agreement, the Commonwealth would take over on the first day of July One thousand nine hundred and twenty-nine:Part III of the Agreement set forth in the Schedule to the

1 Short title [see Note 1]

This Act may be cited as the Financial Agreements (Commonwealth Liability) Act 1932.

2 Commencement

This Act shall be deemed to have commenced on the first day of January, One thousand nine hundred and thirty-one.

3 Interpretation

In this Act, unless the contrary intention appears:

Bondholder means an owner of any:

(i) Inscribed Stock, including Local Inscribed Stock and Government Inscribed Stock;

(ii) Instalment Stock;

(iii) Registered Stock;

(iv) Funded Stock;

(v) Stock payable to bearer;

(vi) Bonds, including registered bonds;

(vii) Debentures, including registered debentures and instalment debentures;

(viii) Treasury Bills not repayable within twelve months from the date of issue; or

(ix) Fixed deposit receipts or special deposit receipts for moneys borrowed for other than temporary purposes;

issued or created by a State or by or on behalf of a Colony the predecessor of the State in respect of borrowed moneys, but does not include the Commonwealth.

The Financial Agreements means one or more or all of the Agreements contained in the Schedules to the Financial Agreement Validation Act 1929, the Debt Conversion Agreement Act 1931 and the Debt Conversion Agreement Act (No. 2) 1931.

4 Assumption of liability by Commonwealth to bondholders 1

(1) The Commonwealth will pay to bondholders from time to time interest payable on the Public Debts taken over by the Commonwealth from the States in pursuance of clause 1 of Financial Agreement Validation Act 1929, other than debts due by the States to the Commonwealth, and, upon the maturity of any securities issued in respect of any such Public Debts, will pay to bondholders the principal moneys secured by those securities.Part III of the Agreement contained in the Schedule to the

Any such bondholder may bring a suit against the Commonwealth in the Supreme Court of a State or Territory for payment of interest due to him at any time on any portion of any such Public Debts of a State, and, upon the maturity of any securities issued in respect of any such public debts, for payment of the principal moneys secured by those securities.

The Consolidated Revenue Fund is hereby appropriated accordingly for the purpose of payments of principal moneys and interest for which in pursuance of the foregoing provisions of this section the Commonwealth is liable.

In addition to and without prejudice to any other remedy or relief, the Commonwealth shall be entitled to recover from a State, by suit in the High Court, any moneys (due and payable and unpaid by the State by virtue of the Financial Agreements or this Act) for which the Commonwealth has become liable by virtue of the Financial Agreements or this Act, or which the Commonwealth has paid in pursuance of those Agreements or this Act.

5 Regulations

The Governor-General may make regulations, not inconsistent with this Act, prescribing all matters 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:

(a) for conferring on the Treasurer and officers of the Commonwealth, powers of requiring returns and production of documents; and

(b) for prescribing penalties, not exceeding in any case Two hundred dollars or imprisonment for six months, for any contravention of the regulations.

The Financial Agreements (Commonwealth Liability) Act 1932 as shown in this compilation comprises Act No. 2, 1932 amended as indicated in the Tables below.

Table of Acts

Act

Number and year

Date of Assent

Date of commencement

Application, saving or transitional provisions

Financial Agreements (Commonwealth Liability) Act 1932

2, 1932

12 Mar 1932

1 Jan 1931

Statute Law Revision (Decimal Currency) Act 1966

93, 1966

29 Oct 1966

1 Dec 1966

—

Jurisdiction of Courts (Miscellaneous Amendments) Act 1979

19, 1979

28 Mar 1979

Ss. 3–123: 15 May 1979 (see Gazette 1979, No. S86) Remainder: Royal Assent

S. 124

Table of Amendments

Notes to the Financial Agreements (Commonwealth Liability) Act 1932

Note 1

ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted	ad. = added or inserted am. = amended rep. = repealed rs. = repealed and substituted
Provision affected	How affected
S. 4	am. No. 19, 1979
S. 5	am. No. 93, 1966